Senate Greenlights Repeal of IRS DeFi Broker Rule in Move Favoring Crypto Innovation
27.03.2025 06:21
The US Senate has passed a resolution to repeal the Biden administration-era rule that required decentralized finance (DeFi) protocols to report their activities to the IRS. With a vote of 70-28, the resolution now heads to former President Donald Trump’s desk for review. The repeal, which had already received backing from the House, aims to alleviate regulatory burdens on DeFi platforms, potentially spurring further innovation within the sector. White House AI and crypto czar David Sacks has signaled support for the measure, reinforcing the political momentum behind the move. As this story develops, market participants are watching closely to see how reduced reporting requirements may unlock further growth and public interest in DeFi projects.
Ethereum, as the primary platform hosting most DeFi protocols, may see a boost from the removal of stringent reporting requirements. In the short term, market sentiment could become more optimistic as regulatory hurdles are perceived to be lower, leading to increased network activity. Over the long term, enhanced developer interest and lower compliance costs could foster broader ecosystem growth, historically contributing to upward price trends for platforms that support robust DeFi activity.
Uniswap’s native token UNI is likely to benefit from the regulatory relief as liquidity and trading volumes on its platform could increase without the burden of additional compliance costs. In the immediate term, renewed investor confidence may lead to price surges. Over time, the potential for increased user adoption and a more favorable operating environment could contribute to sustained price improvements, echoing past trends observed when regulatory pressures on DeFi projects were alleviated.
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