The U.S. House Committee advances the repeal of the IRS DeFi tax regulations, with the industry calling it "unworkable."

ChainCatcher news, according to CoinDesk, the U.S. House of Representatives' fundraising committee passed a resolution by a vote of 26-16 to initiate the repeal of the IRS's new tax regulations on decentralized finance (DeFi) platforms. This resolution must be approved by a majority in both the House and the Senate and signed by the President to take effect.

The IRS approved a transaction reporting system in December 2024, incorporating DeFi protocols into the traditional broker tax framework, which has faced widespread opposition from the crypto industry. Several organizations jointly signed an open letter calling on Congress to repeal this policy. Senator Ted Cruz has already introduced a companion resolution in the Senate.

Republican lawmakers believe that the regulation exceeds legal authority and will increase the compliance burden on American taxpayers and the IRS, while Democratic lawmakers argue that it helps ensure that crypto transactions are taxed according to the law. It is estimated that repealing this regulation will reduce tax revenue by $3.9 billion over the next decade.