Crypto News: US Senate Repeals IRS DeFi Broker Rule, Hyperliquid Delists JELLY Perps, and Polymarket Faces Scrutiny Over Ukraine Deal Bet

US Senate Votes to Repeal IRS DeFi Broker Rule

In a significant move for the crypto industry, the US Senate passed a resolution on March 26 to eliminate the Biden-era IRS DeFi broker rule. This rule had required decentralized finance (DeFi) platforms to report crypto sales and disclose participant details to the Internal Revenue Service. The resolution passed with a vote of 70-28 and will now be sent to President Donald Trump, who has voiced support for killing the rule.

Critics of the rule argued that it would impose burdensome regulations on DeFi platforms, stifling innovation within the space. However, opponents of the resolution warned it could open the door to widespread tax evasion. The Senate’s decision follows similar action taken by the House of Representatives earlier this month.

For more information on the IRS DeFi broker rule and its impact on the industry, click here.

Hyperliquid Delists JELLY Perpetual Futures Amid Suspicious Activity

Decentralized exchange platform Hyperliquid has made headlines after it delisted perpetual futures tied to the JELLY token on March 26. Hyperliquid cited "evidence of suspicious market activity," claiming that a trader opened a massive $6 million short position on JELLY and then manipulated the price by deliberately self-liquidating the position.

In response to the incident, Hyperliquid announced that it would reimburse most affected users. The platform’s non-profit arm, the Hyper Foundation, will compensate users based on on-chain data, ensuring that all but flagged addresses are made whole. Hyperliquid also stated that its primary liquidity pool, HLP, had achieved a positive net income of $700,000 over the past 24 hours.

Despite these efforts, Hyperliquid’s handling of the situation has been criticized. Gracy Chen, CEO of Bitget, referred to the incident as a potential precursor to a scenario similar to the infamous FTX collapse, with concerns about the platform's centralization. For further details on Hyperliquid’s delisting and subsequent actions, check out this article.

Polymarket Faces Backlash Over Controversial Ukraine Mineral Deal Bet

Polymarket, a leading decentralized prediction market, is under fire after a controversial outcome in a betting market regarding a potential rare earth mineral deal between the US and Ukraine. The market, which asked whether President Donald Trump would accept a deal with Ukraine before April, was settled as “Yes,” even though no such event has occurred.

This unexpected settlement raised concerns of a “governance attack,” in which a whale controlled a significant portion of the voting power, influencing the market’s outcome. The individual in question cast 5 million tokens, representing 25% of the total votes, manipulating the oracle that settled the market. The incident resulted in more than $7 million in trading volume before the market was settled.

Polymarket has committed to preventing future occurrences of governance manipulation but has yet to resolve broader concerns around governance issues within decentralized platforms. You can read more about this development.

Today's developments underscore the ongoing regulatory and governance challenges facing the crypto industry, especially as decentralized platforms continue to grow and evolve. The future of DeFi, prediction markets, and broader blockchain applications could be shaped by these events, influencing both innovation and regulatory frameworks.

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