The U.S. Senate has voted to cancel an IRS rule that affects decentralized finance ( DeFi ) platforms, a move seen as a major boost for the crypto world. With President Trump expected to sign the bill , it could officially become law by the end of the week. The bill’s supporters say this will ease pressure on DeFi developers and help grow blockchain innovation. The vote took place on March 26, when senators passed H.J. Res. 25 with a strong 70-28 majority. This resolution, led by Senator Ted Cruz and Representative Mike Carey, had already been passed earlier in March but needed a second vote due to budget rules. The House had previously approved it with a 292-132 vote. Crypto advocate Dan Gambardello called the move “bullish,” pointing out that fewer regulations will likely lead to more innovation. Journalist Eleanor Terrett said, based on a Republican source in the Senate, that the bill could become law by Friday. If President Trump signs it under the Congressional Review Act, it would be the first crypto-related bill to become U.S. law . Earlier this month, David Sacks, the White House advisor for AI and crypto, voiced his support for the resolution, saying Trump’s senior advisors would suggest signing it. This development comes at a time when the crypto industry is pushing for more clear and fair rules. A coalition of organizations—such as Coinbase, Kraken, Paradigm, A16z Crypto, and Polygon Labs—sent a letter to Congress on March 26. The letter was addressed to key committees in the Senate and House, including Banking, Judiciary, and Financial Services. In the letter, the DeFi Education Fund and its partners criticized the Department of Justice’s (DOJ) interpretation of money transmission laws , especially the law on “unlicensed money transmitting businesses.” They argue that the DOJ is stretching the law too far and that it could criminalize software developers who build blockchain tools but don’t hold or control user funds . According to the coalition, these developers use non-custodial technologies, meaning they have no access to customer assets. Treating them as money transmitters, they say, goes against legal tradition and could harm U.S. tech innovation. The letter also says the DOJ’s view doesn’t match earlier guidance from the Financial Crimes Enforcement Network (FinCEN) or past legal rulings. The signers are asking Congress to urge the DOJ to rethink its position. They want to make sure software developers are protected and that U.S. law matches both legal history and what Congress originally meant. The goal is to prevent confusion and keep the U.S. as a leader in digital innovation. In short, this Senate vote signals a turning point. If President Trump signs the bill as expected, it will be a major victory for the crypto industry, reduce oversight on DeFi, and protect developers building open, decentralized systems.
