The legislators of the American House of Representatives advanced a resolution on Wednesday which aims to prevent the Internal Internal Service from imposing tax declaration requirements Decentralized financeor Defi, projects.
The Chamber’s Road and Meaning Committee, by a vote of 26-16, increased the measure of a broader vote on the ground of the Chamber, where the pro-Crypto republicans have a thin majority. The joint resolution aims to eliminate an IRS tax regime for DEFI projects approved in December.
House Ways and Means Chair Jason Smith (R-MO) said In a declaration on Wednesday that the IRS tax rule aims to “unnecessarily regulate digital portfolio providers”. He argued that this would only benefit from non -American companies which are exempt from the “heavy requirements” of the rule.
The way and means committee has just passed Hjres. 25-A resolution that repeals an unjust and impracticable cryptocurrency rule that would hinder cryptocurrency holders and IRS with additional and heavy documents. pic.twitter.com/hrj1ywjsza
– Ways and means committee (@Waysandmeansgop) February 26, 2025
Under the recently approved rule, a modification of the definition of the IRS of the “broker” requires that the DEFI projects are conducted by the same rules for declaring transactions as bond brokers and brokers at Wall Street. The change also applies to centralized exchanges – or any cryptography project facilitating the transfer of digital assets which belong to another person.
The rule obliges DEFI projects to send users a supposed tax document 1099. This would effectively remind users that cryptographic transactions are taxable while reducing “inadvertent or non-compliance errors”, according to a blog article from the US Treasury Department– which also played a role in the formulation of the rule.
Before the resolution could be finalized under the Congressional Review Act with the signing of President Donald Trump, it must also be adopted in Congress by a simple majority.
“The objective of America should be to prioritize innovation, and this rule is the opposite”, the senator Ted Cruz (R-TX) said In promoting a similar resolution he unveiled in the Senate in January.
The Blockchain Association was among many commercial groups which condemned the rule of the IRS tax while it was gaining momentum at the twilight of the administration of former president Joe Biden.
Taking a corner of the digital asset industry that seeks to create autonomous financial services via smart contracts, the Blockchain Association supported The new IRS tax rule would be impossible to impose on DEFI projects.
“Any attempt to link portfolio addresses to personal identities would create a serious and permanent confidentiality problem for these users,” wrote the Blockchain Association, assimilating the measure to the publication of online credit card transactions.
Edited by James Rubin
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