DeFi’s Big Win: Senate Says No to IRS Rule
The U.S. Senate made a big decision recently. They voted to stop a rule from the IRS that wanted to make DeFi platforms report user data. This is a big deal for digital assets in the U.S. Let’s find out why.
What Was the IRS Rule About?
The IRS wanted to change the definition of “brokers” to include DeFi platforms. This would mean these platforms had to tell the IRS about user data and transactions. But many people said this was too hard to do because DeFi platforms don’t hold money or keep customer data like traditional banks do[1][3].
The Senate’s Decision: A Bipartisan Victory
On March 4, 2025, the Senate voted 70-27 to stop this rule. Both Democrats and Republicans agreed that this rule was a bad idea[1][5]. Senator Ted Cruz, who helped with this decision, said the rule was a bad move by the government[5].
Why This Matters for DeFi and Crypto
This is a big win for DeFi. They’ve been saying that rules like this could stop them from being creative and innovative[1]. Now, people in the DeFi industry are happy because this means they can keep working without too many limits[1]. This also means that there might be better rules coming for stablecoins and how cryptocurrency markets work[1][3].
What’s Next?
Now, the House of Representatives needs to vote on this too. They’ve already said they agree with the Senate, so it looks like this rule will be stopped for good[5]. After that, President Donald Trump just needs to sign it, and the rule will be gone[3][5].
A New Start for Financial Innovation
The Senate’s decision is a big deal. It shows that lawmakers understand that DeFi needs different rules than traditional finance. This means the U.S. can be a leader in the global digital asset market. The future of DeFi looks bright now that the House is about to vote and President Trump is ready to sign[1][3][5].
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk