The US Senate has taken a major step towards protecting the decentralized finance (DeFi) industry by passing a resolution to kill a controversial rule that would have required DeFi protocols to report to the Internal Revenue Service (IRS). This resolution, which has now been sent to US President Donald Trump’s desk, aims to prevent the expansion of existing IRS reporting requirements to include crypto assets.

The rule, known as the IRS DeFi broker rule, was introduced by the Biden administration and has faced significant backlash from the crypto community. It would have required DeFi protocols to report user information to the IRS, potentially compromising the privacy and security of DeFi users.

On March 26, the Senate voted 70-28 in favor of the resolution, with bipartisan support. This follows an earlier vote in March, where the resolution was passed by the Senate but was sent back for a final vote before being sent to Trump. The House also voted in favor of the resolution.

The White House’s AI and crypto czar, David Sacks, has publicly stated that Trump supports killing the rule. This is a significant win for the DeFi industry, as it shows that the government is listening to the concerns of the crypto community and taking steps to protect their interests.

This resolution is a crucial development for the DeFi industry, which has been growing rapidly in recent years. DeFi protocols allow for decentralized lending, borrowing, and trading of digital assets, providing users with more control and autonomy over their finances. The industry has faced regulatory challenges in the past, but this resolution is a positive step towards creating a more favorable environment for DeFi to thrive.

It is important to note that this is a developing story, and more information will be added as it becomes available. However, the passing of this resolution is a significant victory for the DeFi industry and a clear indication that the government is taking steps to support and protect the crypto community.

In conclusion, the US Senate’s decision to pass this resolution is a major win for the DeFi industry and a testament to the power of community advocacy. It is a step towards creating a more favorable regulatory landscape for DeFi and ensuring the continued growth and innovation of this important sector.