- The House repeals the DeFi broker rule, boosting crypto confidence.
- Ethereum price rose 2.3% post-vote.
- Market shows optimism for deregulation.
The vote signifies potential regulatory shifts, influencing the crypto market positively with short-term price increases in major cryptocurrencies.
The U.S. House of Representatives voted to abolish the IRS’s DeFi broker rule, deemed by critics as a hindrance to digital asset innovation. Spearheaded by Rep. Jason Smith, the decision reflects bipartisan recognition of crypto’s growing importance. Chairman criticizes Biden’s crypto IRS rule as unfair and unworkable
“The House just passed legislation to repeal the Biden Administration’s unfair and unworkable DeFi broker rule. This misguided IRS rule would have placed unnecessary burdens on taxpayers and threatened American leadership in digital asset innovation.” — Rep. Jason Smith, Chairman of the House Ways and Means Committee
The IRS rule was described as “unworkable,” prompting swift action by lawmakers. Key industry figures including Vitalik Buterin and Coinbase’s Brian Armstrong expressed support for the repeal, welcoming the possibility of more precise regulations.
Following the House vote, major cryptocurrencies such as Ethereum and Bitcoin experienced noticeable price appreciation, which analysts interpret as market approval of the legislative change. The decision is seen as a step toward aligning regulatory measures with innovation needs. Republicans celebrate passing of DeFi broker CRA in the House
The repeal’s impact extends beyond market pricing, signaling a potential easing of regulatory oversight. Industry leaders are optimistic about future policy developments that balance tax requirements with crypto advancement.
The latest price data indicates that Ethereum is currently trading at $4,523, with recent fluctuations aligning with past market trends. Expectations are for prices to stabilize as similar responses have been observed historically.
Experts suggest the legislative shift might lead to refined regulations that support both tax compliance and technological growth. Such changes could bolster U.S. leadership in blockchain innovation.