US Senate Votes to Scrap IRS’s Tough DeFi Rule: A New Start for Crypto
In a big change, the U.S. Senate has voted to cancel an IRS rule that would have made life harder for decentralized finance (DeFi) platforms. This decision is a key step in how the United States is thinking about cryptocurrency rules. The Senate’s vote shows that many lawmakers agree the original rule was not a good idea because it was too hard to follow and could stop new ideas in the DeFi world from happening[1][3].
What Was the IRS’s DeFi Rule?
The IRS wanted to change the rules to make DeFi platforms report user data for tax purposes. Critics said this was not fair because DeFi platforms don’t keep customer data like banks do[1][3]. They thought the rule was too strict and could stop DeFi from growing 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 change, said the rule was a bad idea and too strict[5].
What This Means for the Future
Getting rid of this rule is good news for DeFi platforms. It shows that lawmakers are thinking more about how to support the crypto industry in the U.S. This could lead to better 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 agree. A similar plan has already been approved by the House Financial Services Committee, so it looks likely to pass[5]. After that, it will go to President Donald Trump, who has said he supports this change[3][5].
Looking Ahead: A New Way for Crypto Rules
What Happened and What’s Next
The Senate’s vote to cancel the IRS’s DeFi rule is a big change in how cryptocurrencies are regulated in the U.S. Lawmakers are now thinking more about how DeFi works and how to support it. This could lead to better laws that help the crypto industry grow and stay strong.
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk