US Senate Says “No” to IRS’s DeFi Rule: A Big Step for Crypto!
What’s Happening?
The U.S. Senate has voted to stop a new rule by the IRS that wanted to make decentralized finance (DeFi) platforms report user data for taxes. This is a big deal for the world of cryptocurrencies!
So, What’s the Deal with This IRS Rule?
The IRS wanted to treat DeFi platforms like traditional banks, making them report user data. But many people thought this was a bad idea because DeFi platforms don’t hold funds or keep customer data like banks do. They thought this rule would make it hard for DeFi to grow in the U.S.
What Did the Senate Do?
On March 4, 2025, the Senate voted 70-27 to get rid of this rule. Both parties agreed that this rule was not a good idea. Senator Ted Cruz, who sponsored the resolution to repeal the rule, said it was a bad idea for the government to try to control DeFi like this.
What Does This Mean?
This vote is great news for the DeFi sector. It shows that the U.S. government is starting to understand that DeFi is different from traditional finance and needs different rules. This could lead to more changes in how cryptocurrencies are regulated in the future.
What’s Next?
Now, the House of Representatives needs to vote on this too. A similar vote has already passed in the House Financial Services Committee, so it looks like it will pass there too. After that, President Donald Trump just needs to sign it to make it official.
Why Is This Important?
This vote shows that the U.S. government is starting to understand how important cryptocurrencies are. By getting rid of this rule, they’re making it easier for DeFi to grow and thrive in the U.S. This could help the U.S. become a leader in the global crypto market.
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Sources:
– Crypto News
– Cointelegraph
– CoinDesk