Crypto Update: Senate Confirmation Hearings, European Bank Crypto Adoption, and IRS DeFi Broker Rule Repeal

Senate Hearing Grills SEC Nominee Paul Atkins on Crypto Ties

In a highly scrutinized Senate Banking Committee confirmation hearing on March 27, 2025, Paul Atkins, nominated to be the next SEC chair, faced pointed questions regarding his past ties to the cryptocurrency industry. Massachusetts Senator Elizabeth Warren, a vocal critic of Atkins, raised concerns about his judgment during his tenure as an SEC commissioner from 2002 to 2008. She referenced his role at the agency leading up to the 2008 financial crisis, accusing him of having “staggeringly bad judgment.”

Warren’s questioning also centered around his consulting firm, Patomak Global Partners, which had worked with the collapsed crypto exchange FTX. She asked Atkins to disclose the firm's potential buyers, highlighting concerns over conflicts of interest, particularly if he were to take the helm at the SEC. Senator Warren suggested that the sale of Patomak could serve as a “pre-bribe” for future access to the agency, given the firm's extensive dealings with crypto clients who paid top dollar for regulatory advice.

Atkins, however, did not directly answer Warren's request, only stating that he would "abide by the process" should his nomination be confirmed. The hearing has brought increased scrutiny to the SEC's approach to regulating the rapidly evolving digital asset space.

Survey Finds Only 19% of European Banks Offer Crypto Services Despite Rising Demand

A new survey by Bitpanda, a leading crypto investment platform, reveals that European financial institutions may be underestimating the growing demand for cryptocurrency services. The study, which polled 10,000 retail and business investors across 13 European countries, found that over 40% of business investors already hold cryptocurrencies, with an additional 18% planning to invest in the near future.

However, the survey also showed that only 19% of financial institutions across Europe are currently offering crypto-related products. This indicates a significant gap between the rising interest in cryptocurrencies among investors and the willingness of banks to provide services that cater to this demand.

Despite the slow uptake, the survey also highlighted that 18% of financial institutions are planning to expand their crypto services, with a focus on offering crypto transfer options. This shift reflects the growing recognition of digital assets’ importance in the financial sector, yet European banks still have a long way to go in adapting to the increasing need for crypto services.

US Senate Votes to Repeal Controversial IRS DeFi Broker Rule

In a landmark decision on March 26, 2025, the US Senate passed a resolution to repeal the IRS’s controversial DeFi broker rule. The rule, which was introduced during the Biden administration, required decentralized finance (DeFi) platforms, including decentralized exchanges, to report detailed information about their transactions to the IRS, such as gross proceeds from crypto sales and the parties involved in those transactions.

Critics of the rule argued that it would impose burdensome reporting requirements on DeFi platforms, potentially stifling innovation within the sector. They also warned that the rule could create significant obstacles for decentralized platforms to operate effectively.

The Senate voted 70-28 in favor of the resolution, sending it to President Donald Trump, who has previously expressed his support for repealing the rule. The repeal was seen as a win for the crypto industry, as it avoids a regulatory framework that many believed would hinder the growth of DeFi platforms and innovation in the space.

However, opponents of the repeal argue that it could create a tax evasion loophole and undermine efforts to bring more transparency to the rapidly expanding DeFi sector.

This week in crypto has been full of developments that highlight the tension between regulatory scrutiny and the industry's growth. Whether it's the confirmation of key SEC figures, the challenges European banks face in meeting investor demand, or the potential overhaul of DeFi regulations in the US, these events shape the future of the digital asset landscape. Keep an eye on how these topics unfold as they continue to influence both investors and regulators.