The US House of Representatives has now suggested a bill that would prevent the Tax Authority from regulating taxes in decentralized financing or Defi platforms. The draft law has been transferred to the Hall of the House by the Roads and Means Committee in the House of Representatives by dividing 26-16, and now, the Republicans, who are currently dominating the House of Representatives, support encrypted currencies.
The committee is the ways and means that have just passed by HJRES. 25 – A decision that cancels an unfair and non -applicable encoded currency base that hinders the Cubes and the Tax Authority with additional, exhausting paper works. pic.twitter.com/hrj1ywjsza
– Roads and Means Committee (@@@ February 26, 2025
The decision targeted the regulation of the Tax Authority approved in December, where Defi projects should be classified as brokers. According to the rule, Defi platforms must submit the same criteria for the intermediaries that are exceeded in stocks or securities trading.
This includes providing 1099 tax documents for users. The US Treasury stated that the model may help reduce errors and improve compliance.
The Chairman of the Roads and means of the House of Representatives Jason Smith claims that the measure is unnecessarily flourishing Defi projects while excluding foreign persons. According to Smith, the list protects international competitors by setting very high standards for American projects only.
However, some major encryption companies and pressure groups, such as the Blockchain Association, have opposed the base. Last week, they sent a letter to Congress asking Congress members to cancel the list. Al -Qaeda critics also expressed similar opinions, saying that the base will hinder innovation and put an unjustified pressure on Defi platforms.
Representative Mike Curry went further by saying that the list will increase on both taxpayers and tax department. Republican MP Jason Smith, head of the committee, accused the federal government of overcoming the current tax laws.
However, Democratic lawmakers defended the base as necessary, mainly with regard to tax compliance. Representative Richard Neil defended the list, saying that he was against avoiding taxes and that the law requires everyone to pay what is worthy. If this rule is canceled, the loss of revenue will raise $ 3.9 billion in a decade in the United States alone.
The wider encryption industry response
The decision is compatible with the Senate initiatives, where Senator Ted Cruz (R-TX) provided a similar scale in January. Cruz also expressed his rejection of the Tax Authority base by saying that Blockchain technology faces the risk of stagnation in the United States.
However, this decision cannot be in effect without the approval of both the Congress rooms and the president, a ruling from the law of reviewing Congress. If adopted, the procedure will cancel the tax department base, which means that Defi projects will not be subject to tax reports.
The Tax Authority recently clarified the taxes on the rewards available on encrypted currencies by saying that they are subject to tax upon receipt.
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