According to a report by Forbes, the House of Representatives has voted to repeal the Decentralized Finance (DeFi) Broker Rule, a Biden-era regulation requiring DeFi platforms to report digital asset transactions to the IRS.

The bill, which passed with a 292-132 vote, reverses Treasury regulations issues in December 2024, sending it back to the Senate for final approval before reaching President Trump’s desk. 

The rule was designed to enhance tax compliance by mandating that DeFi platforms issue Forms 1099-DA, similar to traditional financial institutions to report users’ crypto transactions. Forbes reports that compliance with these regulations was expected to boost tax reporting accuracy and reduce underpayment. 

However, critics—including industry leaders and lawmakers—argued that the rule misapplied traditional financial reporting standards to DeFi, which operates without centralized intermediaries. The concern is that forcing DeFi platforms to collect and report user data would be technologically impractical and could stifle innovation. 

Lawsuits and resistance from the crypto community followed the rule’s announcement, leading to bipartisan support for its repeal. While the Senate previously voted to overturn the rule, they must vote again on this version.

If passed, Trump expected to sign it into law, signaling a more crypto-friendly regulatory approach.