Trump Overturns IRS DeFi Broker Rule: A Landmark Decision for Decentralized Finance
In a groundbreaking move for decentralized finance (DeFi) protocols, former US President Donald Trump has overturned the Internal Revenue Service’s (IRS) DeFi broker rule. This rule would have expanded current reporting requirements to include DeFi platforms, potentially impacting the privacy and operational dynamics of these platforms.
Understanding the IRS DeFi Broker Rule
The IRS DeFi broker rule, which was slated to take effect in 2027, aimed to broaden tax reporting requirements. It would have mandated DeFi platforms to disclose gross proceeds from crypto sales and provide detailed information about the taxpayers involved in those transactions. This move was seen as a way to enhance oversight and ensure tax compliance in the rapidly growing DeFi sector.
Trump’s Resolution to Overturn the Rule
On April 10, Trump signed a joint congressional resolution that effectively nullified this Biden administration-era regulation. Representative Mike Carey, an advocate for the bill, stated that the DeFi Broker Rule would have unnecessarily hindered innovation in America, infringed on individual privacy, and overwhelmed the IRS with more filings than its current infrastructure could handle during tax season.
Charles Hoskinson on the Future of Crypto: Collaborative Tokenomics
As the US moves toward greater regulatory clarity in the cryptocurrency space, Cardano founder Charles Hoskinson emphasizes the need for a shift towards more collaborative tokenomics. Speaking at Paris Blockchain Week 2025, Hoskinson highlighted the importance of cooperation among crypto projects to compete with tech giants entering the Web3 domain.
The Challenge of the ‘Circular Economy’
Hoskinson criticized the current state of the crypto market as having a “circular economy,” where the success of one project often comes at the expense of another. He argued that this adversarial tokenomics model is not sustainable, especially with trillion-dollar firms like Apple, Google, and Microsoft eyeing the industry amid clearer regulatory landscapes.
Hoskinson on stage at Paris Blockchain Week. Source: Cointelegraph
Moving Towards Cooperative Equilibrium
Hoskinson advocated for a market structure that promotes cooperative equilibrium rather than competition. Such a shift, he believes, is crucial for the overall health and sustainability of the crypto sector.
Bitcoin’s 24/7 Liquidity: Boon or Bane?
Bitcoin’s 24/7 trading capability, often hailed as a significant advantage, has shown a double-edged nature during periods of global market turmoil. The recent sell-off following a US trade tariff announcement highlighted this complexity.
Impact of Constant Trading Availability
Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock, noted that Bitcoin’s availability as a tradable asset over weekends can lead to significant price corrections, as it becomes the primary asset available for trading during traditional market closures.
Despite a record $5 trillion being wiped from the S&P 500, Bitcoin maintained its value above the $82,000 support level before dropping to under $75,000 by Sunday.
Bybit’s Recovery Post-Hack
After a $1.4 billion hack in February, Bybit has managed to recover its market share to pre-hack levels. The crypto exchange’s resilience is attributed to its enhanced security measures and improved liquidity options for retail traders.
Market Share Rebound
According to a report by crypto analytics firm Block Scholes, Bybit’s market share rose from a post-hack low of 4% to about 7%, signaling a strong recovery in spot market activity.
Bybit’s spot volume market share as a proportion of the market share of the top 20 CEXs. Source: Block Scholes
FTX Creditors Face Potential Losses
Nearly 400,000 creditors of the bankrupt FTX exchange risk losing $2.5 billion in repayments due to incomplete Know Your Customer (KYC) verification. The deadline for verification has been extended to June 1, offering users a final chance to verify their identity.
Potential Financial Impact
Court documents reveal that claims under $50,000 could account for about $655 million in disallowed repayments, while larger claims could amount to $1.9 billion, leading to significant financial risk for creditors.
FTX court filing. Source: Bloomberglaw.com
DeFi Market Overview
Data from Cointelegraph Markets Pro and TradingView shows that most of the top 100 cryptocurrencies by market cap ended the week with losses. The EOS (EOS) token saw the week’s largest decline, falling over 23%, followed by Near Protocol (NEAR), down over 19%.
Total value locked in DeFi. Source: DefiLlama
For more detailed insights and developments in the DeFi space, visit Cointelegraph.
