In a surprising twist that left many scratching their heads, the Senate voted 70-27 to toss out an IRS rule targeting decentralized finance (DeFi) platforms. Yep, you heard that right. This happened on March 4, 2025, and folks in the crypto world are cheering. The IRS had aimed to expand tax reporting requirements, treating DeFi platforms like traditional brokers. You can imagine the chaos that would have caused—billions of new tax filings, anyone?
Senate votes 70-27 to scrap IRS rule on DeFi, sparking cheers in the crypto community!
Many argued that the IRS was overstepping its authority. Critics called the rule “unworkable,” and let’s be honest, who wants to deal with a mountain of compliance paperwork in a world that’s all about decentralization? The Blockchain Association and others were quick to praise the Senate’s decision, claiming it would protect innovation. Eli Cohen from Centrifuge chimed in, stating that trying to enforce such a rule on decentralized platforms was just asking for trouble. Moreover, the decision reinforces the principles of DeFi by allowing users to engage in financial activities without unnecessary interference.
Now, this vote isn’t the end of the road. The resolution still needs to make its way through the House of Representatives. And there’s a good chance that President Trump will sign off on it if it passes. This could set a whole new tone for crypto regulations. Imagine that! A bipartisan effort to support crypto innovation. Who knew that would happen?
Some might say this repeal is a win for the crypto industry, especially for DeFi platforms. It clears the way for more stablecoin and market structure legislation, which could be huge. The IRS had aimed to close tax loopholes, but instead, they might have pushed crypto businesses overseas. Additionally, the Senate’s recent vote demonstrates a growing trend of bipartisan legislation focused on crypto, with 18 Democrats joining Republicans in support of the repeal.
Let’s face it: the rule raised privacy issues and could have crushed innovation. The public reaction? Mostly negative. It’s a refreshing change for many in the industry. So, stay tuned—this saga isn’t over yet!
