US House Votes to Overturn IRS DeFi Broker Rule: What Could Possibly Go Wrong?

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In a stunning twist of events that could only be described as a bureaucratic ballet, lawmakers in the United States have decided to toss the Internal Revenue Service’s rather infamous rule into the great cosmic dustbin of history. This rule, which would have compelled decentralized finance platforms to report user transactions—because who doesn’t love a good dose of government oversight?—has been deemed too much even for the most enthusiastic of tax collectors.

On March 11, the U.S. House of Representatives, in a display of bipartisan camaraderie that would make even the most jaded political observer raise an eyebrow, voted 292-132 in favor of repealing this rule. The 132 votes against it were all from Democrats, while a surprising 76 of their party members decided to join the Republicans in this delightful romp of legislative rebellion. It’s almost as if they realized that perhaps, just perhaps, the IRS doesn’t need to know every little detail about your crypto escapades. Who knew?

The DeFi broker rule, in all its glory, would have required decentralized exchanges and other DeFi platforms to spill the beans on transaction details, including user information and the gross proceeds from crypto sales. Because nothing says “trust” like handing over your personal data to a government agency that can’t even keep track of its own paperwork.

Critics, those brave souls who dare to question the status quo, have argued that this rule would have placed an unreasonable compliance burden on DeFi platforms. They also raised privacy concerns, which is a fancy way of saying, “Hey, maybe we don’t want the IRS snooping around our financial affairs like a cat in a fish market.”

Republican Representative Mike Carey, in a moment of dramatic flair, declared the rule a “massive government overreach” that would have “invaded the privacy of tens of millions of Americans.” Because, of course, nothing screams “freedom” like a government agency peering into your financial transactions.

House Financial Services Committee Chairman French Hill, not to be outdone, echoed these sentiments, calling the rule “a clear example of government overreach” that could potentially drive digital asset development overseas. Because why keep innovation at home when you can send it off to a tropical paradise where the tax laws are as friendly as a golden retriever?

The House vote came hot on the heels of the Senate’s decision on March 4, where lawmakers also decided to strike down the rule with a 70-27 majority. It’s almost as if they were all in on a cosmic joke that the rest of us are yet to understand. As previously reported by crypto.news, the House advanced a resolution to repeal the rule on February 26, which is a date that will surely go down in history as the day common sense prevailed.

With both chambers of Congress now in agreement, the resolution is set to waltz back to the Senate for a final vote before it lands on President Donald Trump’s desk. The White House has already signaled its support for this repeal, making it likely that this little piece of legislative drama will soon be signed into law. And who knows? Maybe one day we’ll look back on this and laugh. Or cry. Probably both. 🤷‍♂️

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2025-03-12 09:50