Trump Overturns IRS DeFi Broker Rule
In a notable development for the decentralized finance (DeFi) sector, former President Donald Trump has rescinded the Internal Revenue Service’s (IRS) rule requiring DeFi platforms to report transactions. This rule, a remnant of the Biden administration, aimed to broaden the IRS’s reporting requirements to encompass DeFi protocols. By signing the joint congressional resolution on April 10, Trump has effectively nullified a regulation that was set to take effect in 2027, which would have mandated DeFi platforms to disclose gross revenues from crypto transactions and the identities of involved taxpayers. Representative Mike Carey, a supporter of the resolution, emphasized that the rule could stifle American innovation, compromise individual privacy, and overwhelm the IRS with excessive filings during tax season.
Collaborative Tokenomics Needed for Crypto’s Future
Charles Hoskinson, the founder of Cardano, has urged that the next wave of cryptocurrency initiatives must adopt a more cooperative framework to stay competitive against dominant centralized technology firms entering the Web3 landscape. During his address at Paris Blockchain Week 2025, Hoskinson highlighted a prevalent criticism of the cryptocurrency and DeFi ecosystems: their tendency to operate in a “circular economy,” where one token’s rise is often financed by the decline of another. He argued that to effectively compete with trillion-dollar companies like Apple, Google, and Microsoft, which are likely to engage in the Web3 arena as regulations become clearer, the crypto sector must shift towards a more collaborative approach in its tokenomics and market dynamics.
Bitcoin’s Liquidity: A Double-Edged Sword Amid Market Turmoil
Bitcoin and other cryptocurrencies are lauded for their 24/7 trading capabilities, but this constant market activity may have exacerbated a significant sell-off over the weekend following new US trade tariff announcements. Unlike traditional stocks that operate within set hours, Bitcoin’s blockchain technology allows for continuous trading. Despite the S&P 500 experiencing a historic loss of $5 trillion over two days, Bitcoin managed to stay above the $82,000 support level initially. However, by Sunday, it dropped below $75,000. Lucas Outumuro, head of research at IntoTheBlock, noted that Bitcoin’s status as the only major tradable asset over the weekend may have contributed to the sell-off, as investors sought liquidity in a panicked market where most exchanges were closed. While weekend trading can sometimes lead to price increases in calmer conditions, it can also heighten volatility during turbulent times.
Bybit Regains Market Share After Major Hack
Bybit has successfully restored its market share to pre-hack levels following a significant security breach that resulted in a loss of $1.4 billion in February. The exchange has taken steps to enhance its security measures and improve liquidity options for retail investors. The hack, which occurred on February 21, was the largest in the crypto industry’s history, affecting various digital assets, including staked Ether. Despite the initial fallout, an April 9 report from crypto analytics firm Block Scholes indicated that Bybit has been gradually recovering its market share, increasing from a post-hack low of 4% to approximately 7%. This recovery reflects a resurgence in trading volumes and improved sentiment among users. The report noted that Bybit’s initial trading volume decline was part of broader market trends rather than solely attributed to the hack.
FTX Users Face Risk of Missing Out on $2.5 Billion in Repayments
Nearly 400,000 creditors of the bankrupt FTX exchange may lose out on $2.5 billion in repayments due to their failure to initiate the required Know Your Customer (KYC) verification process. According to a court filing from April 2 in the US Bankruptcy Court for the District of Delaware, around 392,000 FTX creditors have not completed or even begun the KYC verification needed to claim their funds. The deadline for initiating this process was initially set for March 3, but has since been extended to June 1, providing users with an additional opportunity to verify their identities. Those who do not meet the new deadline risk having their claims permanently disqualified, with claims under $50,000 potentially totaling about $655 million and those over $50,000 reaching $1.9 billion, culminating in over $2.5 billion at stake.
DeFi Market Overview
According to recent data from Cointelegraph Markets Pro and TradingView, the majority of the top 100 cryptocurrencies experienced losses over the past week. The EOS token saw a dramatic decline of more than 23%, marking the steepest drop within this group, followed closely by Near Protocol’s NEAR token, which fell by over 19%. As the DeFi space continues to evolve, staying informed on these trends is crucial for investors and enthusiasts alike. Join us next Friday for more updates and insights on the rapidly changing DeFi landscape.
