By cointelegraph.com on March 26, 2025
Today in crypto, the US Senate passed a motion to kill the IRS DeFi broker deal to Donald Trump, who is expected to support it; Hyperliquid has delisted JELLY token perpetual futures citing “evidence of suspicious market activity,” and a Polymarket pool on a potential US-Ukraine mineral deal drew backlash after a whale-controlled vote led to an incorrect resolution. Senate sends resolution killing IRS DeFi broker rule to Trump The US Senate passed a resolution on March 26 to revoke a Biden-era rule that would have required decentralized finance (DeFi) protocols to report to the Internal Revenue Service, which will now head to President Donald Trump, who has supported killing the rule. The Senate voted 70-28 to pass the motion to repeal the so-called IRS DeFi broker rule that aimed 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. The White House’s AI and crypto czar, David Sacks, has previously said Trump supports killing the rule. Source: DeFi Education Fund Critics of the rule said it would lump decentralized platforms with too onerous rules, which would hamper crypto innovation, while those who opposed the resolution said it would create a tax evasion loophole. The Senate was widely expected to pass the resolution as it originally passed a version of it in early March. The House made a copycat due to Constitutional budget rules, which it passed on March 11. Hyperliquid delists JELLY perps, citing ‘suspicious’ activity Hyperliquid has delisted perpetual futures tied to the JELLY token after identifying “evidence of suspicious market activity” involving the trading instruments, the blockchain network said. The Hyper Foundation, Hyperliquid’s ecosystem nonprofit, will reimburse most affected users for any losses related to the incident, Hyperliquid said in a March 26 post on the X platform. “All users apart from flagged addresses will be made whole from the Hyper Foundation,” Hyperliquid said. “This will be done automatically in the coming days based on onchain data.” Hyerliquid added that the perpetuals exchange’s primary liquidity pool, HLP, has clocked a positive net income of around $700,000 in the past 24 hours. The incident began when a trader “opened a massive $6M short position on JellyJelly” and then “deliberately self-liquidated by pumping JellyJelly’s price on-chain,” Abhi, founder of Web3 company AP Collective, said in an X post. Had Hyperliquid not closed the position, the perpetuals exchange could have faced “full liquidation if JellyJelly reaches $150M mcap,” Abhi added. Source: Hyperliquid Gracy Chen, CEO of cryptocurrency exchange Bitget, later criticized Hyperliquid’s handling of the incident, saying it put the network at risk of becoming “FTX 2.0.” The decision to delist the contracts, which was reached by consensus among Hyperliquid’s relatively small number of validators, flagged existing concerns about the popular network’s perceived centralization. “Despite presenting itself as an innovative decentralized exchange with a bold vision, Hyperliquid operates more like an offshore [centralized exchange],” Chen said, after saying “Hyperliquid may be on track to become FTX 2.0.” Polymarket faces scrutiny over $7 million Ukraine mineral deal bet Polymarket, the world’s largest decentralized prediction market, is under fire after a controversial outcome raised concerns over potential governance manipulation in a high-stakes political bet. A betting market on the platform asked whether US President Donald Trump would accept a rare earth mineral deal with Ukraine before April. Despite no such event occurring, the market was settled as “Yes,” triggering a backlash from users and industry observers. This may point to a “governance attack” in which a whale from the UMA Protocol “used his voting power to manipulate the oracle, allowing the market to settle false results and successfully profit,” according to crypto threat researcher Vladimir S. “The tycoon cast 5 million tokens through three accounts, accounting for 25% of the total votes. Polymarket is committed to preventing this from happening again,” he wrote in a March 26 X post. Source: Vladimir S. Polymarket employs UMA Protocol’s blockchain oracles for external data to settle market outcomes and verify real-world events. Polymarket data shows the market amassed more than $7 million in trading volume before settling on March 25. Ukraine/US mineral deal betting pool on Polymarket. Source: Polymarket
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