The Senate just voted to kill a rule that would have made DeFi platforms report user information to the IRS. This is huge news for the crypto world!
The Senate’s Decision
The Senate voted overwhelmingly (70-28) to repeal the IRS “broker” rule targeting decentralized finance (DeFi). This means DeFi platforms won’t have to share user data with the taxman anymore. This is a major victory for DeFi supporters who argued the original rule was impractical and overly burdensome.
What Does This Mean?
Many believe President Trump will sign the resolution to make this change official. This would reverse a Biden-era policy that many in the crypto community considered a major headache. Analysts are predicting a positive impact on the DeFi market, with traders excited about this potential shift in government policy.
Reactions from the Crypto Community
The Blockchain Association and the DeFi Education Fund celebrated the Senate’s decision, praising the lawmakers who voted in favor. They specifically thanked Senator Ted Cruz and Representative Mike Carey for their leadership. The DeFi Education Fund expects President Trump to sign the resolution, officially ending the IRS’s attempt to regulate DeFi in this way.
David Sacks, the White House’s AI and crypto advisor, confirmed that Trump supports the repeal. Kristin Smith, CEO of the Blockchain Association, expressed hope that this harmful rule is gone for good.
Not Everyone’s Happy
However, not everyone is thrilled. Democratic Representative Lloyd Doggett criticized the move, calling it a loophole that would benefit wealthy tax evaders, drug traffickers, and terrorist financiers. He argued it would make it much easier for the rich to avoid paying taxes.
