The US House of Representatives has proposed a bill to prevent the IRS from regulating taxes on decentralized finance (DeFi) platforms. The bill aims to repeal an IRS regulation passed in December that classified DeFi projects as brokers, requiring them to comply with reporting standards and provide tax documents to users. Republicans, who currently dominate the House, are supporting cryptocurrencies and argue that the regulation burdens DeFi projects unnecessarily. Crypto firms, lobbying groups, and critics of the rule have opposed it, claiming it hampers innovation and puts pressure on DeFi platforms. However, Democratic lawmakers defend the regulation as necessary for tax compliance. The resolution requires approval from both chambers of Congress and the president to take effect. If passed, it will remove the tax reporting requirements for DeFi projects.



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