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In a significant win for the decentralized finance (DeFi) sector, the U.S. House of Representatives has delivered a powerful blow against a controversial IRS rule. By a resounding vote of 292-132, lawmakers decided to overturn a regulation that would have mandated DeFi platforms to act as brokers, requiring them to collect sensitive taxpayer and transaction data. This move has sparked a wave of relief and celebration within the crypto community, but what exactly does it mean, and what comes next? What’s the Big Deal About the DeFi IRS Rule? Imagine if every time you traded stocks on your brokerage app, the platform had to meticulously track and report not just your trades, but also the personal details of everyone you traded with. That’s essentially what the now-overturned IRS rule aimed to impose on the burgeoning world of DeFi. This rule, intended to enhance tax compliance, was met with fierce opposition due to its potential to stifle innovation and impose impractical compliance burdens on DeFi platforms. Let’s break down why this rule was so problematic: Compliance Nightmares: DeFi platforms, often decentralized and automated, are not structured like traditional financial institutions. Implementing broker-like data collection would have been incredibly complex and costly, potentially pushing smaller platforms out of business. Privacy Concerns: The rule demanded the collection of user data, raising serious privacy red flags within a space that often prioritizes pseudonymity and decentralization. Innovation Chill: Supporters of the overturn argued that the rule threatened to cripple the rapidly evolving digital asset innovation within the U.S., potentially driving development and talent overseas. House Vote: A Victory for DeFi Regulation? The House vote represents a significant step back from what many considered an overreaching regulatory attempt. This bipartisan vote underscores a growing recognition in Washington of the need for nuanced and informed DeFi regulation . The resolution, having already cleared the Senate, now requires another Senate approval due to House amendments before it can reach President Trump’s desk. The expectation is that President Trump, known for his generally crypto-friendly stance, is likely to sign it into law. Key Highlights of the House Vote: Bipartisan Support: The 292-132 vote demonstrates significant bipartisan agreement on the need to reconsider the IRS rule. Focus on Innovation: Arguments in favor of overturning the rule heavily emphasized the need to protect U.S. digital asset innovation and competitiveness. Pushback on Overreach: The vote can be seen as a pushback against regulatory overreach that could harm a nascent and promising industry. Cryptocurrency Tax Implications: What Does This Mean for You? While this vote is a victory for DeFi platforms and innovation, it doesn’t mean that cryptocurrency tax compliance is off the table. It simply means the IRS will need to explore alternative, more practical approaches to tax regulation within the DeFi space. Here’s what you should keep in mind regarding cryptocurrency taxes: Tax Obligations Remain: Regardless of this specific rule being overturned, profits from cryptocurrency trading and DeFi activities are still taxable in the U.S. Existing Rules Apply: Current IRS guidelines on cryptocurrency taxation, including reporting requirements for capital gains and losses, remain in effect. Future Regulations: While this particular rule is likely dead, the IRS will likely continue to seek ways to ensure tax compliance in the crypto space. Expect future regulatory proposals that are hopefully more tailored and less burdensome. Impact of the House Vote on DeFi & Crypto Taxes Aspect Before House Vote (IRS Rule in Place) After House Vote (Rule Overturned) DeFi Platform Compliance Burden Extremely High, Potentially Unfeasible Reduced, Focus Shifts to More Practical Solutions User Privacy Significantly Compromised Privacy Concerns Lessened Innovation in DeFi Threatened, Potential for Slowdown Boosted, Fosters Growth and Development Cryptocurrency Tax Compliance Focus on Broker-like Reporting (Now Rejected) Need for Alternative Compliance Mechanisms Digital Asset Innovation: A Step Forward or a Step Back? The debate surrounding the IRS rule highlights a fundamental tension: how to regulate digital asset innovation without stifling its potential. Supporters of the overturn argue that the rule was a step backward, threatening to push innovation offshore and hinder the growth of a vital new technology sector within the U.S. Opponents, however, warn that rolling back the rule could create loopholes for tax evasion and potentially increase the national debt. Arguments For and Against Overturning the Rule: Pro-Overturn (Innovation Focus): Protects nascent DeFi industry from overly burdensome regulations. Encourages continued innovation and investment in the U.S. crypto space. Recognizes the unique nature of DeFi and the impracticality of traditional broker rules. Anti-Overturn (Tax Compliance Focus): Concerns about potential tax evasion in the DeFi space. Need for the IRS to have effective tools to ensure tax compliance. Arguments that all financial activities should be subject to similar reporting requirements. Navigating the Future of IRS Crypto Regulations The overturning of this specific IRS crypto rule is not the end of the story, but rather a pivot. It signals a need for a more collaborative and informed approach to regulating the crypto space. The IRS and lawmakers must now consider developing regulations that are both effective in ensuring tax compliance and practical for the unique characteristics of DeFi and other cryptocurrency activities. This could involve exploring alternative reporting mechanisms, focusing on user education, and working with the crypto industry to develop solutions that work for all parties involved. Actionable Insights: Stay Informed: Keep abreast of ongoing regulatory developments in the crypto space. Maintain Records: Regardless of specific rules, maintain detailed records of your crypto transactions for tax purposes. Engage in Dialogue: Support industry initiatives that promote sensible crypto regulation and engage in constructive dialogue with policymakers. Conclusion: A Breath of Relief, But the Journey Continues The U.S. House vote to overturn the IRS DeFi broker rule is undoubtedly a moment of relief and a testament to the crypto community’s advocacy efforts. It underscores the importance of informed and balanced regulation that fosters innovation rather than stifling it. While this victory is significant, the broader conversation around crypto regulation and taxation is far from over. The industry must continue to engage with policymakers, advocate for sensible rules, and work towards a future where digital asset innovation can thrive within a clear and supportive regulatory framework. The fight for balanced and effective cryptocurrency regulation continues, but for now, the DeFi space can breathe a little easier. To learn more about the latest DeFi regulation trends, explore our article on key developments shaping DeFi institutional adoption.
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Source: Bitcoin World
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Crypto News Crypto DeFi. IRS Regulation Tax
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Base Network Sees Record-High Token Launches and Trading Volume: Clanker Leads the Way
Base network observed an exceptional day on March 10, reaching fresh heights in both token creation and trading volume. The number of tokens created on that day—2,023—by the prolific token creator Clanker, was not only a single-day record for Clanker but was also the highest total ever seen in Base network history for a day’s work. That same day, Clanker’s tokens realized a gargantuan trading volume measure of $45.78 million, marking the highest level of trading on the platform since the late November activity spike. On March 10, the Base network launcher Clanker created a record-high 2,023 tokens, marking the highest daily total in history.On the same day, the trading volume of tokens launched by Clanker reached $45.78 million, the highest level since late November 2023.… — Wu Blockchain (@WuBlockchain) March 11, 2025 The rising figures display the influence and momentum of the Base network in the still-emerging ecosystem of decentralized finance (DeFi). The numbers are seen as a clear sign of the growing popularity of the Base platform, which has made news in the blockchain and cryptocurrency world in recent months for its fresh strategy in the space of token launching. The Surge of Clanker’s Tokens March 10 was a day of activity for Clanker. The attention had already been captured, but it was the way in which Clanker captured it that got people even more intrigued. The token launches were not only being hailed as a record for Clanker, but also a record for the Base network. Is it a project that is going to hit a wall soon? Is it going to keep going up? Which project could possibly be next in line? What differentiates Clanker from other creators of tokens is the amount of engagement and interest from the market that its launches consistently generate. This attention has been recorded in the trading volumes, which hit a stunning $45.78 million on the very same day, eclipsing all previous numbers since way back in late November 2023. This level of trading volume certainly is significant, as it underscores an interest in the platform that seems to be rekindled and an appetite from the market for tokens that are being created on the Base network. In spite of continued volatility in the larger cryptocurrency market, the intense trading activity surrounding Clanker’s tokens indicates that some projects are cutting through the noise and really seem to be thriving, in fact, because of the current political and economic situation. Since these tokens were only recently launched, it’s almost like the Base network has become the Enron of the crypto space in a good way. Top Clankers: Dominating the Market Clanker dominates in terms of the market capitalization that the tokens created on its network have. At the moment, the vanguard trio of Clankers is out front, each drumming up a significant market cap that shows off the success of its token. 1. Clanker: Clanker, with a market cap of $74 million, leads the field by a wide margin. Its tokens are under serious scrutiny by the trading community and developers alike, and that is precisely why it holds a lofty valuation on the Base network. 2. $Bankr: Hot on the heels of $Bankr is $Bankr, with a market cap of $39.86 million. This token has also seen remarkable growth, thanks to its dedicated community and constant development. 3. $DRB: In third place is $DRB, with a market cap of $26.14 million. Even though it’s lagging behind Clanker and $Bankr, $DRB has nonetheless carved out a respectable niche for itself in the marketplace, providing good returns and piquing the interest of a growing number of investors. gm, just woke up. making coffee. top 3 clankers 1. #clanker – $74m mc 2. $bankr – $39.86m mc 3. $drb – $26.14m mc if you are new to clanker eco, a great place to learn more about our ecosystem is @clankfun , I check it every morning https://t.co/AWYLjhaVt8 — clanker ~ autonomous memes ~ (@_proxystudio) March 11, 2025 The combined market cap of these three top tokens is indicative of the overall health and momentum of the Base network. The tokens’ diversity—and their success—is a clear sign of a vibrant and active marketplace, wherein both established and newer projects can find growth opportunities. That these numbers even exist is a testament to the Base network working as a legitimate platform for token launching and trading. A Glimpse Into the Future of Base Network The Base network keeps growing, and that Clanker and other well-known token creators have been successful on it points to a really cool development for the platform. The easy and efficient way that Base lets you launch a token is now almost a thing of legend, and when it gets mentioned, it seems the conversation often leads to the insane token activity that happened on March 10. The Base network looks set to expand its reach and influence. Meanwhile, it is likely that even more tokens will be created and traded over the next few months. The Base community, meanwhile, is really growing in substance and profile. With sustained attention from developers and investors alike, it certainly seems like Base is well on its way to becoming a key decentralized space, especially when it comes to token kicks and capital efficiency. The charge led by Clanker bodes well for the next possible record-breaking achievement. As the crypto market changes, the quality of experience that platforms like Base can offer for token launches will be paramount to their survival—let alone success. And the message from the Base network is clear: it’s not the price of a token that matters; it’s the amount of trading that the token is doing. Combine the two, and you get the bullish picture that Base painted. To conclude, the extremely high token creation and trading volumes experienced on March 10 not only further confirm Clanker’s role as a significant player in the Base network but also showcase the palpable appetite in the market for fresh token creation platforms. As the network continues to develop, that unmistakable growth curve will only seem more pronounced, benefitting traders, developers, and investors. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: fotovideostudio/ 123RF // Image Effects by Colorcinch Bitcoin World
Glassnode Revealed the Real Reason for the Fall in Bitcoin, Warned Investors for This Level! "The Risk Is Not Over!"
While Bitcoin has been on a downward trend in recent weeks that has caused billions of dollars to be wiped out of the market, Glassnode has explained the real reason for the decline. In its latest analysis, on-chain cryptocurrency analytics platform Glassnode argued that the Bitcoin price is under constant selling pressure from short-term investors. He said that these investors bought BTC at its peak of $109,000, but started to panic sell after a small drop. Stating that the decline in BTC and altcoins was deepened by the panic sales of short-term investors, Glassnode said that if the sales continue, there may be a further decline. Glassnode also said that there is a large disconnect between the average purchase price of these investors and the current market value of Bitcoin. According to the data, the average purchase price of investors in October was $62,000, while that price has currently risen to $91,362. With Bitcoin trading at $81.9400, these investors are facing an unrealized loss of approximately 10.6%. Specifically, Glassnode analysts added that selling pressure due to market panic caused short-term investors’ SOPR indicator (on-chain data that measures whether holders are selling their assets at a profit or loss) to drop below 1. “A drop in SOPR below 1 is a sign that short-term investors are cutting their losses because they are unable to overcome their fears. If the sell-off continues, Bitcoin could fall to $70,000.” *This is not investment advice. Continue Reading: Glassnode Revealed the Real Reason for the Fall in Bitcoin, Warned Investors for This Level! "The Risk Is Not Over!" Bitcoin World
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