Senate Votes to Cancel IRS Rule Affecting DeFi Platforms

The U.S. Senate has voted to cancel an IRS rule affecting decentralized finance (DeFi) platforms, potentially boosting the crypto sector. President Trump is expected to sign the bill, which could become law by week's end.

• Senate passed H.J. Res. 25 with a 70-28 majority on March 26.
• The House approved it earlier with a 292-132 vote.
• This would be the first crypto-related bill to become U.S. law if signed.
• Supporters claim fewer regulations will foster blockchain innovation.

A coalition including Coinbase and Kraken sent a letter to Congress criticizing the Department of Justice's interpretation of money transmission laws, arguing it could criminalize non-custodial software developers. They seek clarity to ensure legal protection for these developers and maintain U.S. leadership in digital innovation.

If enacted, this legislation represents a significant shift towards less oversight on DeFi and stronger protections for developers in the crypto space.