IRS Crypto Tax Rule Repeal Considered

U.S. House Committee Moves to Repeal IRS DeFi Tax Rule

• The U.S. House Ways and Means Committee voted 26-16 to advance a resolution against an IRS tax rule for DeFi projects.
• The resolution targets an IRS rule approved in December that requires DeFi projects to report transactions like traditional brokers.
• House Ways and Means Chair Jason Smith criticized the rule as unnecessarily regulating digital wallet providers.
• The IRS rule mandates DeFi projects to issue Form 1099 tax documents to users.
• The Blockchain Association argues the rule is unworkable and poses privacy risks by linking wallet addresses to identities.

The U.S. House Ways and Means Committee’s vote of 26-16 advances a resolution aiming to repeal an IRS tax reporting requirement for decentralized finance (DeFi) projects, which critics argue imposes unnecessary regulations.