US lawmakers are currently advancing efforts to repeal the ‘DeFi broker rule,’ which has sparked significant controversy. This regulation mandates that digital asset brokers report transactions to the Internal Revenue Service, raising concerns about its practicality and potential repercussions for financial innovation in the nation.

The House Ways and Means Committee has successfully passed a resolution aimed at eliminating this regulation. If approved by both the House and Senate, the resolution will be sent to President Donald Trump. The rule, set to take effect in 2027, requires decentralized exchanges to disclose gross proceeds from crypto sales along with taxpayer information.

Critics of the rule argue that it imposes an unreasonable burden on DeFi platforms, which typically do not collect such data. This could disadvantage US firms compared to their foreign counterparts. A representative from the DeFi Education Fund has labeled the rule as an unlawful and unconstitutional overreach. Additionally, the Committee Chairman has criticized the regulation, stating that it was enacted during the final days of the previous administration and would lead to excessive paperwork that the IRS would struggle to manage.

With a Republican-led Congress and a growing pro-crypto sentiment, industry leaders are optimistic about a shift towards a more favorable regulatory environment for digital assets in the US.

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