A crypto whale who allegedly manipulated the prize of the Jelly my Jelly (JELLY) memecoin on decentralized exchange Hyperliquid still holds nearly $2 million worth of the token, according to blockchain analysts.

The unidentified whale made at least $6.26 million in profit by exploiting the liquidation parameters on Hyperliquid.

According to a postmortem report by blockchain intelligence firm Arkham, the whale opened three large trading positions within five minutes: two long positions worth $2.15 million and $1.9 million, and a $4.1 million short position that effectively offset the longs.

Source: Arkham

When the price of JELLY rose by 400%, the $4 million short position wasn’t immediately liquidated due to its size. Instead, it was absorbed into the Hyperliquidity Provider Vault (HLP), which is designed to liquidate large positions.

Related: Polymarket faces scrutiny over $7M Ukraine mineral deal bet

In more troubling revelations, the entity may still be holding nearly $2 million worth of the token’s supply, according to blockchain investigator ZachXBT.

“Five addresses linked to the entity who manipulated JELLY on Hyperliquid still hold ~10% of the JELLY supply on Solana ($1.9M+). All JELLY was purchased since March 22, 2025,” he wrote in a March 26 Telegram post.

The entity continues selling the tokens despite Hyperliquid freezing and delisting the memecoin, citing “evidence of suspicious market activity” involving trading instruments.

The JELLY token’s collapse is the latest in a series of memecoin scandals and insider schemes looking to capitalize on investor hype. 

Source: Bubblemaps

The exploit occurred only two weeks after a Wolf of Wall Street-inspired memecoin — launched by the Official Melania Meme (MELANIA) and Libra (LIBRA) token co-creator Hayden Davis — crashed over 99% after launching with an 80% insider supply.

WOLF/SOL, market cap, 1-hour chart. Source: Dexscreener

Related: Polymarket whale raises Trump odds, sparking manipulation concerns

Lessons from the JELLY memecoin meltdown: “hype without fundamentals”

“The JELLY incident is a clear reminder that hype without fundamentals doesn’t last,” according to Alvin Kan, chief operating officer at Bitget Wallet.

“In DeFi, momentum can drive short-term attention, but it doesn’t build sustainable platforms,” Kan told Cointelegraph, adding:

“Projects built on speculation, not utility, will continue to get exposed — especially in a market where capital moves quickly and unforgivingly.”

While Hyperliquid’s response cushioned short-term damage, it raises further questions about decentralization, as similar interventions “blur the line between decentralized ethos and centralized control.”

The Hyper Foundation, Hyperliquid’s ecosystem nonprofit, will “automatically” reimburse most affected users for losses related to the incident, except the addresses belonging to the exploiter.

Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge

A South Korean court temporarily lifted the partial business suspension on crypto exchange Upbit that had prohibited the trading platform from servicing new clients for three months. 

On Feb. 25, South Korea’s Financial Intelligence Unit (FIU) sanctioned the exchange, imposing a three-month ban on deposits and withdrawals for new clients. The FIU previously said the suspension was in response to Upbit’s violations of policies that prohibit exchanges from transacting with unregistered virtual asset service providers (VASPs). 

In response to the FIU’s sanction, Upbit’s parent company, Dunamu, filed a lawsuit against the FIU, seeking to overturn the partial suspension order. In addition, Dunamu requested an injunction to temporarily lift the suspension order. 

On March 27, local media Newsis reported that the court granted the injunction, moving the suspension order 30 days after a court judgment is reached. This allows Upbit to service new clients while the legal battle continues. 

Upbit investigations led to a 3-month suspension order

Founded in 2017, Upbit is South Korea’s largest crypto exchange. On Oct. 10, the country’s Financial Services Commission (FSC) initiated an investigation into Upbit for potential breaches of the country’s anti-monopoly laws. 

In addition to anti-monopoly breaches, the exchange is suspected of violating Know Your Customer (KYC) rules. On Nov. 15, the FIU identified up at least 500,000 to 600,000 potential KYC violations of the exchange. The regulator spotted alleged breaches while reviewing the exchange’s business license renewal. 

In 2018, South Korean regulators ended anonymous crypto trading for its citizens. With the new development, users must pass KYC procedures before being allowed to trade digital assets on crypto trading platforms like Upbit. 

Apart from these allegations, the FIU accused Upbit of facilitating 45,000 transactions with unregistered foreign crypto exchanges. This violates the country’s Act on Reporting and Using Specified Financial Transaction Information.

Related: South Korea plans to regulate cross-border stablecoin transactions

South Korea cracks down on overseas exchanges

On Oct. 25, 2024, South Korea strengthened its oversight of cross-border crypto asset transactions. The country’s finance minister, Choi Sang-Mok, said the government will introduce a reporting mandate for businesses that handle cross-border transactions with digital assets.

This aims to promote preemptive monitoring of crypto transactions “used for tax evasion and currency manipulation.”

In line with the rules, South Korea’s Google Play blocked the applications of 17 crypto exchanges at the request of the FIU. The FIU said it’s also working to restrict exchange access using the internet and Apple’s App Store. 

Magazine: Ridiculous ‘Chinese Mint’ crypto scam, Japan dives into stablecoins: Asia Express

Opinion by: Marc Boiron, chief executive officer of Polygon Labs

Decentralized finance (DeFi) needs a reality check. Protocols have chased growth through token emissions that promise eye-popping annual percentage yields (APYs) for years, only to watch liquidity evaporate when incentives dry up. The current state of DeFi is too driven by mercenary capital, which is creating artificial ecosystems doomed to collapse.

The industry has been caught in a destructive cycle: Launch a governance token, distribute it generously to liquidity providers to boost total value locked (TVL), celebrate growth metrics, and watch helplessly as yield farmers withdraw their capital and move to the next hot protocol. This model doesn’t build lasting value — it creates temporary illusions of success.

DeFi deserves a better approach to value creation and capital efficiency. The current emission-driven yield model has three fatal flaws that continue to undermine the industry’s potential.

Inflationary emissions

Most yield in DeFi comes from inflationary token emissions rather than sustainable revenue. When protocols distribute native tokens as rewards, they dilute their token value to subsidize short-term growth. This creates an unsustainable dynamic where early participants extract value while later users are stuck holding devalued assets.

Capital flight

Mercenary capital dominates DeFi liquidity. Without structural incentives for long-term commitment, capital moves freely to whatever protocol offers the highest temporary yield. This liquidity isn’t loyal — it follows opportunistic paths rather than fundamental value, leaving protocols vulnerable to sudden capital flight.

Misaligned incentives

Misaligned incentives prevent protocols from building sustainable treasuries. When governance tokens are primarily used to attract liquidity through emissions, protocols fail to capture value for themselves, making investing in long-term development and security impossible.

Recent: SEC plans 4 more crypto roundtables on trading, custody, tokenization, DeFi

These problems have played out repeatedly across multiple DeFi cycles. The “DeFi summer” of 2020, the yield farming boom of 2021 and subsequent crashes all show the same pattern: unsustainable growth followed by devastating contractions.

Protocol-owned liquidity

How can this be fixed? The solution requires shifting from extractive to regenerative economic models, and protocol-owned liquidity represents one of the most promising approaches to solving this problem. Rather than renting liquidity through emissions, protocols can build permanent capital bases that generate sustainable returns.

When protocols own their liquidity, they gain multiple advantages. They become resistant to capital flight during market downturns. They can generate consistent fee revenue that flows back to the protocol rather than temporary liquidity providers. Most importantly, they can create sustainable yield derived from actual economic activity rather than token inflation.

Use bridged assets to generate yield

Staking bridged assets offers another path toward sustainability. Usually, bridged assets just sit there and don’t contribute much toward the liquidity potential of connected blockchains. Through staking the bridge, assets in the bridge are redeployed into low-risk, yield-bearing strategies on Ethereum, which are used to bankroll boosted yields. This allows protocols to align participant incentives with long-term health, and it’s a boost to capital efficiency.

For DeFi to mature, protocols must prioritize real yield — returns generated from actual revenue rather than token emissions. This means developing products and services that create genuine user value and capture a portion of that value for the protocol and its long-term stakeholders.

While sustainable yield models typically produce lower initial returns than emissions-based approaches, these returns are sustainable. Protocols embracing this shift will build resilient foundations rather than chasing vanity metrics.

The alternative is continuing a cycle of boom-and-bust that undermines credibility and prevents mainstream adoption. DeFi cannot fulfill its promise of revolutionizing finance while relying on unsustainable economic models.

The protocols that do this will amass treasuries designed to weather market cycles rather than deplete during downturns. They’ll generate a yield from providing real utility rather than printing tokens.

This evolution requires a collective mindset shift from DeFi participants. Investors need to recognize the difference between sustainable and unsustainable yield. Builders need to design tokenomics that reward long-term alignment rather than short-term speculation. Users need to understand the true source of their returns.

The future of DeFi depends on getting these fundamentals right. It’s time to fix our broken yield model before we repeat the mistakes of the past.

Opinion by: Marc Boiron, chief executive officer of Polygon Labs.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Solana Ghibli-inspired memecoins are surging in popularity as ChatGPT users have flooded social media with Studio Ghibli-inspired images over the past 24 hours.

On March 25, OpenAI launched image generation for its ChatGPT-4o mode, leading users to splash images across social media style in the art style of Studio Ghibli — known for its anime films Spirited Away and My Neighbor Totoro.

OpenAI CEO Sam Altman and billionaire entrepreneur Elon Musk contributed to the trend, posting portraits of themselves generated by the model. Musk, with over 219 million followers on his platform X, has a history of influencing memecoins such as Shiba Inu (SHIB) and Dogecoin (DOGE) with his posts.

Sam Altman posted a Studio Ghibli-inspired AI image while announcing ChatGPT’s image generation tool. Source: Sam Altman

Neither Musk nor Altman mentioned any Ghibli-themed memecoin. Still, the largest Ghibli-themed token by market cap, Ghiblification (GHIBLI) has reached a market cap of $20.80 million since it went live 19 hours ago, according to DEX Screener.

At the time of publication, it is trading at $0.02083, up approximately 39,010% since it was created.

The Solana-based memecoin Ghibli has climbed by nearly 40,000% since it launched on March 26. Source: DEX Screener

At least 20 other Ghibli-related memecoins have been created since. Some crypto traders see it as a potential sign of life for the memecoin market, which has dropped 57% in value since Dec. 8 — just days after Bitcoin first hit $100,000.

Crypto trader Sachs said in a March 26 X post that he is praying the memecoin “runs to $100M to bring some hopes into these markets.”

“Severely needed,” Sachs added.

Related: The $100B memecoin market meets AI-driven intelligence for smarter trading

It follows the recent trend of memecoins sparking out of cultural references and movements. The CHILLGUY token launched on Nov. 15 on the Solana blockchain, riding the wave of the viral “Just a chill guy” meme that gained popularity on social media.

CHILLGUY’s value surged, reaching a peak market capitalization of $643 million by Nov. 27. 

However, investing in memecoins tied to daily trends comes with significant risk. CHILLGUY is down 95% from its November high, according to CoinMarketCap data.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Trading platform Robinhood Markets plans to offer a service that delivers cash to its customers alongside an artificial intelligence research assistant that offers trading advice.

The company said in a March 27 blog post that its online banking arm, Robinhood Banking, will offer savings accounts to its Gold subscribers through its partner Coastal Community Bank and will be given the option to have physical cash delivered on demand.

“You could be sitting at home and decide to get a cash delivery the same way you’d want to order an Uber or a Postmates,” Robinhood Markets CEO Vlad Tenev said during a livestream

He added there are already home delivery services for groceries and meals, but banking still “hasn’t progressed that much past the branch office and the ATM.”

https://t.co/oGJ630tmI2

— Robinhood (@RobinhoodApp) March 27, 2025

“In the past, cash delivery was a service that some private bankers offered to their high-end customers. It wouldn’t work exactly like this, though. The cash would be a much larger amount and would usually make its way to you in an armored vehicle,” he said.

The service terms and conditions state that the delivery service coverage is based on geographic location and that travel routes may be limited without mentioning who the drivers are or how they’re selected.

Robinhood’s concept for its planned cash delivery service. Source: Robinhood

The firm also has plans for a platform called Robinhood Strategies, offering a mix of single stocks and exchange-traded funds (ETFs).

Later this year, the firm said it will launch an AI-powered research assistant called Cortex for its $5 a month Gold subscribers that can provide analyses and insights about market trends and stocks to consider trading.

Tenev said the firm spoke to traders about what would give them a better edge in stock trading and then spent two years developing Cortex, keeping their feedback in mind.

Related: Robinhood to pay $30M to settle US regulator probes

Robinhood product management vice president Abhishek Fatehpuria added that the firm is looking to bring cryptocurrencies to the platform at some point in the future.

Robinhood has been expanding its footprint in emerging asset classes, including crypto and derivatives. 

The platform launched a prediction betting markets hub on March 17, which sent its stock surging by 8%.

Robinhood Markets (HOOD) closed the March 26 trading day down 7.1% at $44.73, which continued to fall an additional 2.84% after hours, according to Google Finance.

On March 13, the company listed memecoins like Pengu (PENGU), Pnut (PNUT) and Popcat (POPCAT) in a bid to expand its presence in crypto. In January, it rolled out futures contracts tied to cryptocurrencies such as Bitcoin (BTC).

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OpenAI expects to more than triple its revenue this year to $12.7 billion, despite fast-growing competition from the likes of China’s DeepSeek and other competitors making rapid progress.

The ChatGPT creators also expect its revenue target for 2025 to more than double to $29.4 billion by 2026, Bloomberg reported on March 26, citing a person familiar with the matter.

The 2025 estimate is a little higher than the $11.6 billion revenue target that OpenAI was reportedly eyeing for 2025, The New York Times reported last September.

Bloomberg noted that the bulk of ChatGPT’s revenue has come from its paid AI software subscription offerings for consumers and businesses.

OpenAI reportedly hit 1 million paid users for the corporate versions of ChatGPT last September, while the company more recently added a $200 monthly ChatGPT Pro option.

The Sam Altman-led firm does not expect to be cash-flow positive until 2029, when it expects its revenue to top $125 billion, the person told Bloomberg.

OpenAI is reportedly close to finalizing a $40 billion funding round led by SoftBank Group at a valuation of up to $300 billion, Bloomberg reported on March 26. The firm is also looking to convert its nonprofit business model into a for-profit venture.

Competition heats up between US and Chinese AI players

While the release of DeepSeek’s ChatGPT-competitor “R-1” model sent shockwaves through the AI industry in late January, it sparked a wave of several other high-quality, low-cost AI solutions from other Chinese tech firms, Bloomberg reported on March 26.

Baidu Inc. launched its “Ernie X1” model to compete with DeepSeek’s R-1 model in China, while Alibaba Group launched its new open-source AI model for cost-effective AI agents on March 26.

Source: David Sacks

Tencent Holdings also unveiled an AI chatbot of its own under subsidiary firm Ant Group Co, while DeepSeek released its latest model — DeepSeek-V3-0324 — on March 24.

Related: Cathie Wood to kick off El Salvador’s AI public education program

While it remains to be seen how these Chinese models truly stack up against OpenAI’s products, the newer and often cheaper options are putting more pressure on the business models of leading US companies, Balaji Srinivasan, a tech investor and former general partner at tech-focused venture capital firm Andreessen “a16z” Horowitz said in a March 22 X post.

“China is trying to do to AI what they always do: study, copy, optimize, and then bankrupt everyone with low prices and enormous scale.”

Lee Kai-fu, CEO of Chinese startup 01.AI told Reuters on March 25 that DeepSeek’s efforts have positioned Chinese AI firms only three months behind their US counterparts after previously being around six to nine months behind.

Source: The Short Bear

Meanwhile, OpenAI’s CEO Sam Altman said on Feb. 12 that his firm is looking to ship GPT-4.5 and GPT-5 in the coming weeks or months.

Plus and Pro subscribers will be able to run GPT-5 at a “higher level of intelligence” which will incorporate voice, canvas, search, deep research features and more, he said in OpenAI’s technical roadmap update.

Among OpenAI’s competitors in the US market are Anthropic, DeepMind, xAI and Google’s Gemini.

Magazine: What are native rollups? Full guide to Ethereum’s latest innovation

France-based The Blockchain Group has added another 580 Bitcoin to its Bitcoin treasury, following a 225% surge in its stock price since it began hoarding Bitcoin in November.

This is the largest of the three Bitcoin purchases made by the organization, per a March 26 after-hours statement. At the time of publication, 580 Bitcoin is worth $50.64 million, with Bitcoin’s (BTC) price trading at $87,311, according to CoinMarketCap data.

First purchases at pivotal Bitcoin moments

The Blockchain Group’s first two Bitcoin purchases happened around significant milestones for the Bitcoin industry. It bought 15 BTC on Nov. 5, the same day Donald Trump won the United States presidential election and before Bitcoin went on a month-long rally that saw it reach $100,000 for the first time in December.

Bitcoin is up 24.38% over the past 12 months. Source: CoinMarketCap

The second purchase was 25 Bitcoin on Dec. 4, when Bitcoin was trading at $96,000 during the post-election rally, with anticipation growing about a six-figure price — which happened the next day.

March 26 isn’t a major date for Bitcoin, but it’s five days before the end of Q1 2025 — a quarter where Bitcoin has underperformed compared to previous years’ first quarters — and it’s also approaching the first anniversary of the Bitcoin halving on April 20.

According to The Blockchain Group’s website, the Bitcoin strategy was an effort to leverage the holding company’s excess cash and appropriate financing instruments.

The Blockchain Group (ALTBG) is listed on Euronext Paris, Europe’s second-largest stock exchange by market cap.

The firm refers to itself as a “global umbrella” of companies specializing in data intelligence, AI and decentralized technology. Since it began its Bitcoin accumulation on Nov. 5, ALTBG has risen 225% to 0.48 euros ($0.52), according to Google Finance data.

The latest Bitcoin purchase was announced after the market already closed on March 26.

Blockchain Group SA stock has soared since it announced its Bitcoin accumulation. Source: Google Finance

It comes on the same day that GameStop shares jumped nearly 12% after the company announced plans to purchase Bitcoin.

The company plans to finance the purchase through debt financing. After markets closed on March 26, GameStop announced a $1.3 billion convertible notes offering.

Related: Bitcoin must break this level to resume bull market as $2.4B in BTC leaves exchanges

N7 Capital founder Anton Chashchin said in a recent statement viewed by Cointelegraph, “It’ll be interesting to observe if other companies take up the baton from GameStop and where this will lead the market.”

Meanwhile, US-based angel investor Jason Calacanis said buying Bitcoin was a solution well-suited for public companies that do not have a suitable business model.

Michael Saylor, the original advocate for corporate Bitcoin adoption, has led his firm, Strategy, to recently cross the 500,000 Bitcoin mark, currently holding 506,137 Bitcoin.

Between November and January, Strategy maintained a 12-week consecutive Bitcoin buying streak.

Magazine: Ex-Alameda hire on ‘pressure’ to not blow up Backpack exchange: Armani Ferrante, X Hall of Flame

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

A coalition of crypto firms has urged Congress to press the Department of Justice to amend an “unprecedented and overly expansive” interpretation of laws that were used to charge the developers of the crypto mixer Tornado Cash.

A March 26 letter signed by 34 crypto companies and advocate groups sent to the Senate Banking Committee, House Financial Services Committee and the House and Senate judiciary committees said the DOJ’s take on unlicensed money-transmitting business means “essentially every blockchain developer could be prosecuted as a criminal.”

The letter — led by the DeFi Education Fund and signed by the likes of Kraken and Coinbase — added that the Justice Department’s interpretation “creates confusion and ambiguity” and “threatens the viability of U.S.-based software development in the digital asset industry.”

The group said the DOJ debuted its position “in August 2023 via criminal indictment” — the same time it charged Tornado Cash developers Roman Storm and Roman Semenov with money laundering.

Storm has been released on bail, has pleaded not guilty and wants the charges dropped. Semenov, a Russian national, is at large.

Source: DeFi Education Fund

The DOJ has filed similar charges against Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill, who have both pleaded not guilty.

The crypto group’s letter argued that two sections of the US Code define a “money transmitting business” — Title 31 section 5330, defining who must be licensed and Title 18 section 1960, which criminalizes operating unlicensed.

It added that 2019 guidance from the Treasury’s Financial Crimes Enforcement Network (FinCEN) gave examples of what money-transmitting activities and said that “if a software developer never obtains possession or control over customer funds, that developer is not operating a ‘money transmitting business.’”

The letter argued that the DOJ had taken a position that the definition of a money transmitting business under section 5330 “is not relevant to determining whether someone is operating an unlicensed ‘money transmitting business’ under Section 1960” despite the “intentional similarity” in both sections and FinCEN’s guidance.

Related: Hester Peirce calls for SEC rulemaking to ‘bake in’ crypto regulation 

The group accused the DOJ of ignoring both FinCEN’s guidance and parts of the law to pursue its own interpretation of a money-transmitting business when it charged Storm and Semenov.

They said the result had seen “two separate US government agencies with conflicting interpretations of ‘money transmission’ — an unclear, unfair position for law-abiding industry participants and innovators.”

The letter said that if not addressed, the Justice Department’s interpretation would expose non-custodial software developers “within the reach of the U.S. to criminal liability.”

“The resulting, and very rational, fear among developers would effectively end the development of these technologies in the United States.”

In January, Michael Lewellen, a fellow of the crypto advocacy group Coin Center, sued Attorney General Merrick Garland to have his planned release of non-custodial software declared legal and to block the DOJ from using money transmitting laws to prosecute him.

Lewellen said the DOJ “has begun criminally prosecuting people for publishing similar cryptocurrency software,” which he claims extended the interpretation of money-transmitting laws “beyond what the Constitution allows.”

Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’  

The trader behind recent “suspicious market activity” on Hyperliquid that led to the freeze and delisting of the Jelly my Jelly (JELLY) memecoin is potentially down almost $1 million from their actions. 

Blockchain analytics firm Arkham Intelligence said in a March 26 post to X that the trader attempted to manipulate the system to profit from price movements, withdrawing collateral before Hyperliquid’s liquidation system could catch up.

The trader opened three accounts within five minutes of each other, two with $2.15 million and $1.9 million long positions, and the third a $4.1 million short, to cancel out the long positions, according to Arkham in a post-mortem report. 

“This allowed him to build up leverage in an attempt to drain funds from Hyperliquid,” Arkham said.

Source: Arkham

When the price of Jelly pumped by over 400%, the $4 million short position entered liquidation, but the open short didn’t liquidate immediately because it was too large and instead passed to the Hyperliquidity Provider Vault (HLP), which is supposed to liquidate the position.

At the same time, the trader withdrew collateral from the other two accounts while having a “7-figure positive PnL to withdraw from,” Arkham said.

However, the “exploiter” quickly hit a wall when the accounts, which still had millions in unrealized profit and loss, were restricted to reduce-only orders, forcing them to sell the tokens in the first account on the market to recoup some of the funds.

Source: Arkham

Hyperliquid eventually closed the Jelly token market at a price of 0.0095, the same price as the trader’s short trade, which “zeroed out all floating PnL on the first two exploiter accounts.”

In total, Arkham says the trader withdrew $6.26 million, but at least $1 million is still in the accounts.

“Assuming he can withdraw this at some point in the future, his actions on Hyperliquid have cost him a total of $4,000. If he is unable to, he faces a loss of almost $1 million,” the blockchain analytics firm said.

Hyperliquid has since delisted perpetual futures tied to the JELLY token, citing evidence of suspicious market activity. 

Other traders have been using similar tactics 

This isn’t the first time Hyperliquid has had issues like this. On March 14, Hyperliquid increased margin requirements for traders after its liquidity pool lost millions of dollars during a massive Ether (ETH) liquidation.

Related: Bitget CEO slams Hyperliquid’s handling of “suspicious” incident involving JELLY token

A whale trader intentionally liquidated a roughly $200 million Ether long position on March 12, causing HLP to lose $4 million while unwinding the trade. 

Traders have also begun hunting whales on the platform, targeting prominent leveraged positions in a “democratized” attempt to liquidate them.

Magazine: What are native rollups? Full guide to Ethereum’s latest innovation

Update (March 27, 3:03 am UTC): This article has been updated to add background and information on the resolution.

US President Donald Trump is expected to sign a resolution overturning a Biden-era rule that requires decentralized finance (DeFi) protocols to report to the IRS, following the legislation’s passage in the Senate on March 26.

The Senate voted 70-28 to pass a motion repealing the so-called IRS DeFi broker rule that aimed to expand existing IRS reporting requirements to crypto.

The Senate was widely expected to pass the resolution as it passed a version of the resolution in early March, but the House made its own version due to Constitutional rules about where budget measures should originate.

The House passed its copycat version on March 11, which sent it to the Senate for a final vote before it could be sent to Trump.

Source: DeFi Education Fund

The White House’s AI and crypto czar, David Sacks, has said Trump supports killing the rule.

The rule would aim to require DeFi platforms, such as decentralized exchanges, to file their gross proceeds from crypto sales and include information on those involved in the transactions.

Related: Crypto regulation must go through Congress for lasting change — Wiley Nickel

Critics of the rule have claimed it would lump decentralized platforms with too onerous rules, which would hamper innovation in crypto and DeFi.

Blockchain Association CEO Kristin Smith applauded the Senate vote in a statement, saying the advocacy group looked forward “to taking this harmful rule off the books for good.”

Eli Cohen, general counsel of the RWA tokenizing platform Centrifuge, said in a statement to Cointelegraph earlier in March that the rule never made “any sense and was unworkable in practice.”

Those opposing the resolution included Democratic Representative Lloyd Doggett, who said before the House’s vote earlier this month that it was a “special interest exemption” from IRS disclosures, which “makes tax evasion and money laundering so much easier for wealthy Republican donors who have been using these decentralized exchanges.”

He claimed killing the rule would create a “loophole that would be exploited by wealthy tax cheats, drug traffickers and terrorist financiers.”

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips