Congress just delivered a massive blow to the IRS's crypto crackdown. In a rare show of bipartisan unity, the House voted 292-132 to overturn regulations forcing DeFi platforms to act like traditional brokers – a rule critics called about as logical as asking vending machines for customer data. With 76 Democrats joining Republicans and a previous 70-27 Senate victory, lawmakers made it clear: the IRS went too far. The battle's not over yet though – there's more drama ahead.
A stunning display of bipartisan rebellion rocked Capitol Hill as lawmakers from both sides of the aisle joined forces to challenge the IRS's controversial DeFi regulations. The House delivered a resounding 292-132 vote to overturn an IRS rule that would have treated decentralized finance platforms like traditional brokers. The rule would require Form 1099 collection from DeFi platforms for all non-employment transactions.
Even 76 Democrats broke ranks to support the Republican-led initiative, making it clear that crypto regulation isn't just a partisan issue anymore.
Bipartisan support shows crypto regulation transcends traditional party lines, with dozens of Democrats joining Republican efforts for sensible oversight.
The IRS thought it could simply slap traditional financial reporting requirements onto DeFi platforms. Big mistake. These platforms don't even collect the kind of user data the IRS wanted them to report. It's like asking a vending machine to file detailed reports about its customers' eating habits.
Representative Mike Carey (R-OH) led the charge with a joint resolution that found unexpected allies across party lines. House Ways and Means Committee Chairman Jason Smith condemned the rule as unfair and unworkable for the industry. The Senate had already voted 70-27 to overturn the rule, proving that when it comes to opposing regulatory overreach, politicians can actually work together. Who knew?
Not everyone's thrilled about this rebellion. Senator Chuck Schumer and Representative Lloyd Doggett voiced concerns about tax evasion, with Doggett dismissing the effort as "special interest legislation."
Meanwhile, crypto industry leaders are practically dancing in the streets, viewing the vote as a victory for innovation and common sense.
The fight isn't over yet. The resolution needs a second Senate vote before landing on the president's desk. But the message is clear: Congress isn't buying what the IRS is selling.
Industry groups have argued that implementing these rules would drive U.S. companies overseas faster than you can say "regulatory burden."
Using the Congressional Review Act, lawmakers aren't just stopping this rule – they're making sure similar regulations can't sneak through without explicit congressional approval.
It's a rare moment when Washington actually listens to the tech community's concerns about innovation and practicality. The Blockchain Association called it an encouraging sign for crypto's future in America. For once, they might be right.
