The US House of Representatives has officially passed a resolution to repeal the controversial Internal Revenue Service (IRS) regulation related to decentralized finance (DeFi) platforms. The move marks a major step forward in protecting privacy and reducing the compliance burden on DeFi platforms.

Bipartisan Support

The House of Representatives showed strong consensus in opposing the IRS regulation by a vote of 292-132 on March 11. Of the 132 votes in opposition, all came from Democrats, but 76 members of the party voted with Republicans to repeal the regulation.

Previously, on March 4, the US Senate also voted to repeal the regulation by a vote of 70-27.

Privacy Concerns and Compliance Burden

The IRS DeFi Broker Rule requires decentralized exchanges and DeFi platforms to report detailed information about user transactions, including identities and total proceeds from cryptocurrency sales. Critics say this not only creates an unnecessary regulatory burden but also raises serious privacy concerns.

Republican Representative Mike Carey called the rule a “government overreach” and warned that it could infringe on the privacy of tens of millions of Americans. House Financial Services Committee Chairman French Hill echoed the sentiment, noting that the rule could cause the digital asset industry to move overseas rather than grow domestically.

Prospects for Deregulation

With both the Senate and House having voted in favor of the repeal resolution, the next step will be a final vote in the Senate before it goes to President Donald Trump’s desk.

The White House has signaled its support for the repeal, increasing the likelihood that it will be signed into law, formally eliminating IRS reporting requirements for DeFi platforms.

This repeal could be a major boon for the US digital asset industry, reducing regulatory hurdles and spurring the growth of the DeFi ecosystem in the future.