US Senate Votes to Scrap IRS’s Tough DeFi Rule: A New Start for Crypto
Introducing: A Change in Crypto Rules
The U.S. Senate has made a big decision! They voted to cancel an IRS rule that would have made life hard for decentralized finance (DeFi) platforms. This means a new chapter in how we regulate cryptocurrencies in the United States. The Senate’s vote shows that many lawmakers think the old rule was too strict and could hurt the growth of DeFi[1][3].
What Was the IRS’s DeFi Rule?
The IRS wanted to change the rules so that DeFi platforms would have to report user data for tax purposes. Critics said this was a bad idea because DeFi platforms don’t hold money or keep customer data like banks do[1][3]. They thought this rule would make it hard for DeFi to grow in the U.S.
The Senate’s Vote: Democrats and Republicans Agree
On March 4, 2025, the Senate voted 70-27 to get rid of the rule. Both Democrats and Republicans agreed on this. Senator Ted Cruz, who sponsored the resolution, said the rule was unfair and didn’t make sense[5].
What Happens Next?
The repeal of this rule isn’t just good news for DeFi. It also shows that lawmakers want to change how we regulate cryptocurrencies. The Blockchain Association, which represents big crypto companies, welcomed this move. They think it will help the crypto industry grow in the U.S.[1][3]. The Senate’s action might lead to more laws about stablecoins and how the crypto market works in the future[1].
The Next Steps: House and President’s Approval
For the rule to be officially canceled, the House of Representatives must also vote for it. A similar resolution has already been approved by the House Financial Services Committee, so it looks like it will pass[5]. After that, the resolution will go to President Donald Trump. He has said he supports getting rid of this rule[3][5].
Looking Ahead: A New Era for Crypto
What’s Next?
The Senate’s decision to scrap the IRS’s DeFi rule is a big deal. It shows that lawmakers are starting to understand how DeFi works and how it’s different from traditional finance. This could lead to more supportive laws in the future, helping the U.S. become a leader in the global crypto market. As the crypto industry keeps growing, clear rules will be very important for its health and stability.
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk