U.S. Senate Repeals IRS Broker Rule for DeFi Platforms

2 mins mins

Key Points:

The U.S. Senate voted to repeal the IRS’s “broker” rule.
President Trump is expected to sign the bill soon.
Potential impacts on DeFi platforms and regulatory clarity.

The U.S. Senate voted 70-28 on Wednesday evening to repeal the IRS’s “broker” rule for DeFi platforms, forwarding the bill to President Trump for approval.

This decision could affect how decentralized finance platforms navigate tax regulations, potentially altering operational frameworks.

Senate’s Repeal and Its Industry Consequences

The Senate’s repeal of the IRS’s “broker” rule seeks to redefine regulatory understanding for DeFi platforms, marking a shift in governmental policy toward these burgeoning financial technologies. David Sacks, the White House crypto and AI czar, indicated President Trump’s advisors will suggest endorsing the bill. As the legislative process advances, stakeholders across the cryptocurrency industry monitor the situation, likened by some to a pivotal decision that could foster significant industry evolution. Notably, industry leaders anticipate enhanced regulatory clarity, hoping this will bolster future innovation. Gracy Chen, CEO of Bitget, criticized Hyperliquid’s operations, stating, “If the platform does not address product design flaws and the trust crisis, it could become the ‘next FTX.'”

CoinMarketCap reports the current price of Altlayer (ALT) at $0.04 with a market cap of $123.37 million. Over the last 24 hours, trading volume has surged 287.38% to $60.11 million. The past 90 days show a price decline of 64.01%.

Market Reactions and Outlook Post-Repeal

Did you know? The IRS’s “broker” rule has been a contentious point for DeFi platforms, drawing comparisons to historical challenges faced during earlier digital currency regulatory shifts.

Insights from Coincu’s research team suggest the repeal may trigger positive financial shifts, though caution remains warranted. Potential regulatory adjustments and technological advancements could redefine DeFi’s landscape, introducing both opportunities and challenges.