🚨 U.S. Senate Votes to Kill Controversial IRS DeFi Rule — Trump Expected to Make It Law This Week
In a move that could change the future of crypto in America, the Senate has just voted to wipe out a rule that threatened to crush DeFi innovation — and all eyes are now on President Trump.
The crypto world is holding its breath this week, and here’s why:
The U.S. Senate has officially voted to repeal the IRS’s DeFi broker rule, a regulation that many said would have crippled blockchain innovation and left DeFi developers exposed to harsh penalties.
The vote wasn’t even close — the resolution passed with a commanding 70-28 majority.
If that wasn’t enough, President **Donald Trump is expected to sign the bill into law by the end of the week, making it the first-ever crypto-related legislation in U.S. history.
This isn’t just another policy change — this is a seismic shift in how America treats crypto.
🗳️ What Just Happened?
On March 26, the Senate passed H.J. Res. 25, a resolution led by Senator Ted Cruz and Representative Mike Carey, which nullifies a burdensome IRS rule aimed at labeling DeFi developers as financial brokers — a rule that would have forced developers, coders, and innovators to act like banks, filing tax forms and collecting private information on users they don’t even control.
The House had already approved the measure earlier this month by an overwhelming 292-132 vote, but under budget rules, it needed another vote in the Senate — which just happened.
The bill is now on its way to President Trump’s desk, and all signs point to him signing it without hesitation.
⚠️ Why This Matters — And Why You Should Care
This isn’t a small policy tweak.
This is the U.S. government, for the first time, officially saying:
“We will not kill decentralized finance with outdated regulations.”
If Trump signs it, the repeal will:
✅ Stop the IRS from forcing DeFi developers to act like banks
✅ Protect coders and blockchain builders from unjust legal exposure
✅ Create space for U.S. crypto innovation to grow without fear of being criminalized
And the message will be clear to regulators and policymakers everywhere:
Crypto is no longer an afterthought — it’s now a serious, protected part of the American financial system.
🔥 The Industry Is Watching — And Celebrating
Crypto leaders and advocates wasted no time reacting to the Senate vote.
Dan Gambardello, a prominent crypto analyst, called the repeal “bullish”, saying it could unleash a new wave of blockchain innovation.
Journalist Eleanor Terrett reported that Trump’s senior advisors are already backing the bill and that it could become law by Friday.
Even the White House’s new crypto advisor, David Sacks, has voiced support, confirming that Trump’s team is aligned with the resolution.
If signed, this bill will mark the first crypto-related law in U.S. history — a milestone that changes everything.
📣 The Battle Behind the Vote
The repeal didn’t happen by chance.
Behind the scenes, some of the biggest names in crypto — Coinbase, Kraken, Paradigm, A16z Crypto, Polygon Labs, and more — rallied together.
They sent an open letter to Congress just days ago, urging lawmakers to shut down the IRS rule.
In the letter, they argued that the IRS and the DOJ were trying to apply old, outdated money transmission laws to DeFi developers who don’t even control customer funds.
They warned that under these rules, even writing open-source blockchain software could land someone in legal trouble — a dangerous and absurd overreach.
Their message was clear:
You can’t criminalize the people building the future.
💥 A Turning Point for Crypto Policy
The repeal of this rule is about more than tax forms or technical jargon — it’s about who controls the future of finance.
Until now, U.S. regulators have been heavy-handed, dragging developers, exchanges, and blockchain platforms into legal battles that stifled innovation and scared away builders.
But this vote shows that lawmakers are finally listening — and shifting gears.
For the first time, crypto isn’t just surviving Washington. It’s winning.
👀 What’s Next?
If Trump signs the bill this week as expected, it will become the first-ever crypto law in U.S. history — setting the stage for:
🔸 Clearer, fairer rules around crypto development
🔸 Reduced government overreach in decentralized spaces
🔸 A stronger position for the U.S. in the global digital economy
But the fight isn’t over.
The broader crypto industry still faces legal uncertainty, especially around DeFi protocols, stablecoins, and cross-border platforms.
This vote is a major victory — but it’s only the beginning of a much bigger battle over who will control the future of money.
✅ Stay Tuned with FortacoFinoy News
We’ll be following this story closely as it develops.
If President Trump signs this bill, it won’t just be a win for crypto — it’ll be a historic moment that redefines digital finance in America.
Follow FortacoFinoy News for real-time updates, expert analysis, and everything you need to know about the future of crypto regulation.
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You said:
what rule threaten to crush DeFi innovation
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The rule that threatened to crush DeFi innovation was the IRS’s “DeFi Broker Rule”, officially known as part of the 2023 Broker Reporting Requirements under the U.S. Infrastructure Investment and Jobs Act.
🚨 What Did This Rule Say?
Under this rule, the IRS wanted to classify decentralized finance (DeFi) developers, software coders, miners, validators, and even wallet providers as “brokers”.
In simple terms, they would have been legally required to collect personal information about their users (names, addresses, Social Security numbers) and report every transaction to the IRS — just like banks or stock brokers do.
But here’s the problem: DeFi platforms don’t hold user funds, don’t control transactions, and don’t even know who their users are.
They are open-source software tools, not banks.
So the rule would have made it legally impossible for most DeFi developers to operate in the U.S. without violating privacy, technical, or ethical principles.
⚠️ Why Was It a Threat to DeFi Innovation?
If enforced, this rule would have:
❗ Criminalized open-source software development
❗ Forced DeFi apps to collect user data they technically can’t access
❗ Pushed developers and innovation out of the U.S.
❗ Killed small DeFi startups who couldn’t afford compliance costs
❗ Destroyed the very foundation of decentralization — privacy & autonomy
That’s why the crypto community fought so hard against it — and why the Senate repeal vote is such a huge win for DeFi.
📢 Stay Updated — for real-time crypto updates, market insights, and the latest on DeFi, blockchain, and digital finance developments.
