Senate Targets IRS Rule Threatening DeFi Platforms in Upcoming Vote: Here is Why This is Bullish

• The U.S. Senate is set to vote on repealing an IRS rule that threatens the crypto and DeFi sector.
• The Trump administration has announced plans for a national cryptocurrency reserve, signaling a pro-crypto shift.
• Senate leaders also aim to repeal a CFPB regulation targeting digital wallets and payment apps.

As the United States moves further into the crypto era, the Senate is gearing up to vote on repealing an IRS rule that has been looming over the crypto and DeFi sector. Senate leaders are expected to strike down a controversial crypto broker rule—one of two key regulations from the Biden administration now on the chopping block, according to a CoinDesk report.

Meanwhile, the Trump administration has announced its plans to launch a national cryptocurrency reserve. While debates continue over which tokens will be included, the move signals another major step in America’s increasingly pro-crypto stance.

US Senate Moves to Repeal IRS Rule Impacting Crypto & DeFi

With Donald Trump back in the White House, the country’s crypto policy is undergoing a drastic shift. Since his return, the U.S. Securities and Exchange Commission (SEC) has taken a different direction, now under acting chair Mark Uyeda. The commission has even established a dedicated crypto task force to focus on industry oversight and protection.

In line with this shift, the U.S. government unveiled its cryptocurrency reserve plans over the weekend. But at the same time, efforts are being made to roll back previous regulatory measures seen as burdensome to the industry. Specifically, the Senate is now poised to vote on repealing an IRS rule that many believe threatens the growth of crypto and DeFi.

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Regulations on the Chopping Block

According to reports, Senate leaders aim to reverse two key regulations from the previous administration: the IRS DeFi rule and a Consumer Financial Protection Bureau (CFPB) digital payment rule. The IRS rule places stricter disclosure requirements on decentralized projects, which could be overturned within days.

Additionally, the CFPB regulation targets tech companies providing payment applications or digital wallets. Senator Ted Cruz had previously introduced a CRA resolution to eliminate the IRS rule, and now both regulations appear to be on the verge of repeal by week’s end.

With these policy changes unfolding, the landscape for crypto in the U.S. is evolving rapidly, setting the stage for a more favorable regulatory environment.