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Bitcoin Market Volatility and Legislative Changes Impacting DeFi Regulations

U.S. lawmakers are advancing a resolution to repeal a controversial IRS rule requiring decentralized finance (DeFi) brokers to report crypto transactions, with the House Ways and Means Committee voting 26-16 in favor. Critics argue the rule is unworkable and infringes on financial privacy, while the IRS maintains it aims to level the playing field with traditional finance. As Bitcoin experiences significant sell-offs, industry leaders express concerns over the impact of regulatory changes on crypto innovation.

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U.S. House Votes to Overturn IRS Tax Rule on DeFi Platforms

The U.S. House of Representatives has voted to overturn an IRS rule requiring decentralized finance (DeFi) platforms to adhere to strict tax reporting, a move seen as a significant win for the crypto industry. The resolution, backed by major crypto firms, faces opposition from some lawmakers who argue it is essential for tax compliance. If passed, the repeal could result in a $3.9 billion loss in tax revenue over the next decade, highlighting the ongoing conflict between regulatory measures and innovation in the crypto space.

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