Here’s What Happened in Crypto Today: Fed Signals Readiness, NY Moves on Crypto Payments, and Trump Kills IRS DeFi Rule

Federal Reserve Signals It’s Ready to Step In If Liquidity Dries Up

In a fresh interview with the Financial Times, Boston Federal Reserve President Susan Collins reassured markets that the Fed is fully prepared to intervene if liquidity concerns emerge.

“We would absolutely be prepared,” Collins said, referring to the central bank’s readiness to deploy monetary tools to support market stability. While she emphasized that no immediate liquidity concerns exist, her comments follow a sharp sell-off in both equities and bonds that raised red flags about potential market instability.

As a voting member of the Federal Open Market Committee (FOMC) this year, Collins’ words carry significant weight. The committee recently opted to hold interest rates steady during its March meeting but surprised markets by scaling back its quantitative tightening efforts, cutting the redemption cap on Treasurys by 80%.

The Fed’s Collins pictured in a December interview with Bloomberg. Source: Bloomberg Television

This subtle pivot suggests the Fed is quietly laying the groundwork for possible intervention should broader financial conditions worsen.

New York Introduces Bill to Allow Crypto Payments for State Services

Crypto may soon become a payment option for government services in New York. Assemblyman Clyde Vanel has introduced Assembly Bill A7788, which proposes amending state financial law to allow agencies to accept cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) for a wide range of payments.

If passed, the legislation would enable crypto payments for everything from taxes and fees to penalties, fines, and rent obligations. State agencies would have the authority to determine when and how they accept these digital payments.

This marks New York’s second crypto-focused bill in recent months. In March, the state introduced Bill A06515, which aimed to criminalize crypto fraud and introduce legal protections against rug pulls.

The legislative push aligns with broader federal momentum under President Donald Trump’s administration, which has voiced strong support for crypto innovation and policy reform. Trump has repeatedly stated his intention to make the U.S. a global leader in blockchain development.

Source: Nysenate.gov

President Trump Signs Resolution Repealing IRS DeFi Broker Rule

In a major regulatory rollback, President Donald Trump signed a resolution on April 10 repealing a controversial IRS rule that would have imposed strict reporting requirements on decentralized finance (DeFi) platforms.

The now-defunct rule, introduced during the Biden administration, was set to take effect in 2027 and would have required DeFi protocols to report gross proceeds from crypto sales and collect detailed taxpayer information—treating them much like traditional financial brokers.

Backed by Representative Mike Carey, the resolution marks the first crypto-related legislation ever signed into law by a U.S. president, setting a new precedent for digital asset regulation.

Opponents of the IRS rule argued it would place an unrealistic burden on decentralized protocols, potentially stifling innovation and driving developers offshore. Supporters, however, said repealing the rule opens up tax loopholes that could be exploited by high-net-worth individuals.

The move reflects Trump’s broader stance on deregulation in the digital asset space. According to White House crypto adviser David Sacks, the administration is prioritizing crypto growth and aims to foster an environment that encourages blockchain innovation.

Source: Mike Carey

Final Thoughts

Today’s developments highlight a crucial intersection of policy, innovation, and macroeconomics in the crypto space. As the Federal Reserve keeps a close eye on liquidity, state and federal governments are actively reshaping how crypto fits into both financial infrastructure and everyday governance. With regulatory shifts gaining momentum, the days of crypto existing in legal gray areas appear to be numbered — but whether that’s good or bad depends on who you ask.