Trump to Kill Annoying IRS Crypto Rule?! 🤯

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The US Senate, in a move that’s about as surprising as a politician being slightly less truthful than usual, voted to kill an IRS rule targeting those wacky decentralized finance (DeFi) platforms. Think of it as a bureaucratic paperwork monster getting a swift kick in the pants (a metaphorical one, of course. We’re not advocating violence, even against annoying regulations). This little piece of legislation is now heading to President Donald Trump’s desk, where it awaits his, presumably, enthusiastic signature.

According to the grapevine (and some slightly more reliable sources), this resolution is about to become law, possibly by the end of the week. Faster than you can say “blockchain,” this thing is zooming through the system.

Lawmakers Do Something Unexpected (For Once!)

On March 26th, the Senate voted 70-28 to pass H.J. Res. 25, a bill introduced by Senator Ted Cruz (yes, *that* Ted Cruz) and Representative Mike Carey. This wasn’t the first time they voted on it this month – they did it once before, on March 4th, scoring another 70-27 victory. Apparently, there’s some sort of weird budget-related procedural thingamajig that needed a second vote. Bureaucracy, folks. It’s a beautiful thing. 🙄

The House also got in on the action, approving its version with a whopping 292-132 vote. It seems like everyone except a small, confused group of nay-sayers agreed that this rule was more trouble than it was worth.

“This clears the way for innovation in DeFi. This is bullish—less regulation, more growth, as we’ve been saying,” wrote Dan Gambardello on X. (Translation: More money for everyone! 🎉)

Meanwhile, Eleanor Terrett, host of *Crypto in America*, (which sounds like a far more exciting show than it probably is 😂), spilled the beans, quoting a Republican Senate source, suggesting the bill could become law as early as this Friday.

“Resolution to overturn IRS DeFi broker rule could become law by week’s end,” she stated. (Yeah, we’re shocked too.)

Terrett added that if Trump signs the Congressional Review Act (CRA), it would be the first cryptocurrency-related bill to become law. Even more exciting is that David Sacks, the White House’s AI and crypto czar (yes, *that’s* a job title), publicly supported the resolution. He basically said, “Sign this, Mr. President!”

“If S.J. Res. 3 were presented to the President, his senior advisors would recommend that he sign it into law,” he posted. (Because, you know, they’re *always* right. 😉)

If this thing passes, it’ll be a massive win for the cryptocurrency industry, basically a giant “whew!” moment for the DeFi sector. Less regulation? Sign us up!

This whole thing is happening amidst a larger push for regulatory clarity. On March 26th, the DeFi Education Fund and a bunch of other organizations sent a letter to various Senate and House Committees. It’s like they’re trying to explain to a toddler the difference between a banana and a wrench.

The letter basically called out the Department of Justice (DOJ) for its questionable interpretation of money transmission laws. Apparently, the DOJ’s interpretation is so broad it could accidentally criminalize software developers. Talk about unintended consequences! 🤦‍♂️

“We write to urge you to correct the Department of Justice’s (DOJ) unprecedented and overly expansive interpretation of the criminal code provision proscribing operating an “unlicensed money transmitting business” as applied to software developers,” the letter read. (In other words: “Hey DOJ, you’re being a bit of a menace.”)

The coalition argued that the DOJ’s stance is creating a whole lot of unnecessary confusion and could potentially lead to the unfair treatment of blockchain developers. They’re worried that this could drive blockchain development out of the US, which would be a huge loss for American innovation.

The letter also points out that the DOJ’s position contradicts previous legal interpretations and guidance from the Financial Crimes Enforcement Network (FinCEN). It’s like they’re playing a game of regulatory whack-a-mole, but instead of moles, it’s innovation.

Big names like Paradigm, A16z Crypto, Polygon Labs, Coinbase, and Kraken all signed the letter, basically saying, “Hey Congress, please fix this mess!” They’re asking Congress to urge the DOJ to clarify its position, hoping to prevent the stifling of innovation in the US tech sector. Because, let’s face it, nobody wants to see American tech innovation get squashed like a bug.

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2025-03-27 08:56