US Senate Votes to Scrap IRS’s Tough DeFi Rule: A Big Win for Crypto!
What’s the Big Deal?
The U.S. Senate recently voted to scrap a rule by the IRS that would have made life tough for decentralized finance (DeFi) platforms. This is a huge deal for the world of cryptocurrencies because it shows that the government is starting to understand how these new technologies work.
So, What Was This Rule About?
The IRS wanted to make DeFi platforms report user data for tax purposes, just like banks do. But here’s the thing: DeFi platforms don’t hold funds or keep customer data like traditional banks do. So, this rule was like trying to fit a square peg into a round hole![1][3]
What Happened in the Senate?
On March 4, 2025, the Senate voted 70-27 to scrap the rule. Both Democrats and Republicans agreed that this rule was not a good idea. Senator Ted Cruz, who sponsored the resolution to scrap the rule, said it was a silly idea that didn’t make sense.[5]
Why Is This a Big Deal?
Scrapping this rule is not just a win for DeFi platforms. It’s a sign that the government is starting to understand that cryptocurrencies and blockchain technology need special rules. This could lead to better laws for stablecoins and crypto markets in the future.[1]
What’s Next?
Now, the House of Representatives needs to vote on this too. Luckily, the House Financial Services Committee has already said they’re okay with scrapping the rule. After that, President Donald Trump just needs to sign it into law.[5]
Conclusion: A New Chapter for Crypto!
What’s the Bottom Line?
The Senate’s vote to scrap the IRS’s DeFi rule is like turning a new page in the story of cryptocurrencies in the U.S. It shows that the government is starting to get how DeFi works and wants to help it grow. This could lead to better laws for crypto in the future, helping the U.S. become a leader in the global crypto market.
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk