The US Representative House has taken the first important step to delete the work of the Internal Revenue Service to introduce a tax regime on decentralized economic (defi) platforms in the last days of former President Joe Bid’s administration.

House Ways and Means Committee-It Panel, which is responsible for overseeing the Treasury’s Department’s IRS IRS-made a decision in a 26-16 vote to reverse the IRS transaction reporting policy under the Congressional Review Act. Such an effort requires majority approval in both parliament and the Senate before a presidential signature would finally make the move, and the case is now moving to the overall house.

In December, the IRS had approved a system that the crypto industry says that forces defi protocols for a reporting regime designed for brokers who threatened the way such protocols work and also potentially include a wide range of devices that are not brokers at all. Almost every major name in the crypto sector signed a blockchain association letter last week that called for elimination of this rule.

Read more: Crypto Industry asks Congress to scrape the IRS’s Defi Broker Refree

Senator Ted Cruz, a Republican in Texas, has field a Senate version of the CRA decision to cut the IRS rule.

“We need to adopt this decision to avoid this nightmare for US taxpayers and for the IRS,” Rep said. Mike Carey, an Ohio Republican who has been pushing for Congress to cut back to rule, which he claimed would overwhelm the tax agency.

Democrat Rep. Richard Neal from Massachusetts opposed the Republican Push.

“The bill ahead of us today would be abolished sensible and important Treasury regulations that ensure that taxpayers fulfill their obligations for tax archiving and not the skirt law by selling cryptocurrency without reporting the gains,” he said. “It’s really so simple.”

Removing the specific tax method for decentralized crypto platforms would reduce US revenue by an estimated $ 3.9 billion over a decade.

Rep. Jason Smith, the Republican President of the Missouri committee, accused the IRS of going behind the “letter of the law” when it approved the rule in the bite’s last days in office.

“It’s not just unfair, but it’s useless,” he said.