US Senate Votes to Scrap IRS’s Tough DeFi Rule: A New Start for Crypto!
Introduction: A Big Change in Crypto Rules
The U.S. Senate has made a big decision! They voted to cancel an IRS rule that wanted to make decentralized finance (DeFi) platforms report user data for taxes. This is a huge step in how the U.S. thinks about cryptocurrency rules. The Senate agreed that the old rule was too hard to follow and could stop DeFi from growing[1][3].
What Was the IRS’s DeFi Rule?
The IRS wanted DeFi platforms to be like traditional banks and report user data. But critics said this was too hard because DeFi platforms don’t keep user data like banks do[1][3]. Some people thought this rule was too strict and would stop DeFi from growing in the U.S.
The Senate’s Big Vote
On March 4, 2025, the Senate voted 70-27 to cancel the rule. Both parties agreed on this, which shows that everyone thinks digital money is important and needs better rules. Senator Ted Cruz, who supported this, said the rule was too strict and didn’t make sense[5].
What Happens Next?
This isn’t just good news for DeFi, but also a sign that rules for cryptocurrency might change. The Blockchain Association, which represents big crypto companies, is happy about this[1][3]. The Senate’s vote might help make new rules for stablecoins and how the crypto market works, which are important things to think about[1].
The Next Steps
Now, the House of Representatives must also vote to cancel the rule. They already agreed to this in a committee, so it’s likely to happen[5]. After that, President Donald Trump will decide if the rule is officially canceled. He has said he supports canceling the rule[3][5].
Conclusion: A New Start for Crypto!
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 ruled in the U.S. Lawmakers are now understanding that DeFi has its own challenges and opportunities. This could lead to better rules for crypto, helping the U.S. be a leader in the global crypto market. As crypto keeps changing, clear rules will be very important for it to grow and be stable.
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk