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News

Senate Prepares Final Vote on IRS DeFi Rule Repeal

2 mins mins
Key Points:

  • The Senate is set to vote on repealing the IRS’s DeFi broker rule.
  • Repeal could influence market operations and investor behavior in DeFi.
  • Decision holds significance for U.S. standing in crypto advancements.

senate-to-vote-on-repeal-of-irss-defi-broker-rule
Senate to Vote on Repeal of IRS’s DeFi Broker Rule

This Thursday, the Senate will revisit the final vote regarding the IRS’s DeFi broker reporting rule repeal.

The outcome could reshape financial innovation in the decentralized finance landscape, as repealing the rule could influence market operations and investor behavior.

Senate’s Decisive Vote on IRS Rule Repeal

A Senate vote is scheduled this Thursday to decide on the final repeal of the IRS’s DeFi broker rule. This follows a bipartisan “supermajority” agreement on March 4th, though a technical issue necessitated a second vote. Senate Majority Leader John Thune and Senator Ted Cruz lead this bipartisan effort.

The IRS rule aimed to extend reporting requirements, potentially affecting crypto exchanges and their global compliance stance. Repealing the rule might affect the federal deficit by $4.5 billion through 2035. The decision holds significance for maintaining the U.S.’s role in crypto advancements.

Key figures have voiced strong opinions, with John Thune stating, “The Biden administration did everything it could to stifle financial innovation in the United States, threatening to send digital asset companies overseas. The Senate is working to undo these burdensome regulations one at a time to restore financial freedom for the American people.” Meanwhile, Kristin Smith of the Blockchain Association suggests the repeal supports future stablecoin and market structure legislation.

Implications of the Repeal for DeFi and U.S. Policy

The repeal discussions mirror previous government efforts, such as those during the Trump administration, to revert predecessor regulations. This mirrors tactics like the Congressional Review Act, often used to shift regulatory stances between changes in presidential administrations.

Expert analysis suggests the repeal’s passage could encourage DeFi and crypto companies to remain U.S.-based rather than moving operations offshore. The move could also reshape compliance landscapes, providing a more flexible environment for innovation within America.

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Avatar of John Kojo Kumi

John Kojo Kumi

25 March 2025, 20:00:07 GMT +0000

John Kojo Kumi is a cryptocurrency researcher and writer specializing in emerging startups, tokenomics, and market dynamics within the blockchain ecosystem. With years of experience in crypto journalism and blockchain research, he provides in-depth coverage of decentralized finance (DeFi), NFTs, and Web3 innovations.

He holds a Bachelor of Arts in Geography and Rural Development from Kwame Nkrumah University of Science and Technology, Kumasi, bringing a multidisciplinary perspective to the evolving digital asset space. As a Crypto News Writer, he tracks and reports on industry trends, while his role as a Registrar at the Commission on Human Rights and Administrative Justice reflects his commitment to governance and transparency.

His expertise spans content strategy, SEO optimization, and technical research, enabling him to craft insightful, data-driven analyses. Passionate about blockchain’s transformative potential, he strives to equip readers with the knowledge to navigate the complexities of digital assets and decentralized technologies.

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