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US Lawmakers Push to Repeal Controversial DeFi Broker Rule

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  • The House Ways and Means Committee voted to advance a resolution repealing the DeFi broker rule.
  • The rule requires decentralized exchanges to report transaction details to the IRS.
  • Critics argue the regulation is impractical and threatens financial innovation.

The U.S. House Ways and Means Committee has advanced a resolution to repeal the DeFi broker rule, a regulation requiring decentralized exchanges to report transaction details to the IRS. Lawmakers voted 26-16 on February 26 to move forward with the measure, signaling opposition to the rule set to take effect in 2027. If approved by Congress and signed into law, the resolution will overturn reporting requirements for cryptocurrency brokers.

Critics Call DeFi Broker Rule Unworkable

The DeFi broker rule, approved by the IRS on December 5, expands reporting requirements to include gross proceeds from crypto sales and taxpayer details. Critics argue the regulation is impractical, as decentralized finance platforms do not collect the user data necessary for compliance. Lawmakers opposing the rule claim it oversteps government authority and threatens financial innovation in the U.S.

The repeal effort has gained momentum among lawmakers seeking to promote a crypto-friendly regulatory environment. House Ways and Means Committee Chairman Jason Smith criticized the rule for imposing unrealistic requirements on DeFi brokers. He argued that the IRS lacks the resources to handle the additional paperwork the rule would generate.

Industry leaders warn that enforcing the regulation could drive crypto businesses away from the U.S. Miller Whitehouse-Levine, CEO of the DeFi Education Fund, labeled the rule unconstitutional and called for immediate action to overturn it. Supporters of the repeal stress the importance of maintaining the U.S. as a competitive hub for financial technology.

The opposition argues that decentralized finance operates without intermediaries, making compliance nearly impossible. They believe enforcing the rule would create excessive burdens for both businesses and regulators. Many crypto advocates fear the regulation could stifle innovation and push companies to relocate abroad.

Political Shift and Future Implications

The push for repeal follows a broader shift in U.S. crypto policy under the Republican-controlled Congress. Many pro-crypto lawmakers have secured seats, increasing the likelihood of reduced regulatory restrictions. The new administration is expected to prioritize policies that encourage financial technology growth.

Regulatory agencies have already signaled a shift in enforcement priorities. Throughout February, the SEC dropped several cases against crypto firms, reflecting a more lenient stance. The Justice Department is also expected to shift its focus toward other policy areas, such as immigration enforcement.

If the resolution passes the House, it will proceed to the Senate for approval. Should both chambers support the measure, it will then move to President Donald Trump for final approval. The decision will determine the future regulatory landscape for decentralized finance in the U.S.

DeFi Victory: SEC Drops Uniswap Case After 3 Years

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Key Takeaways:

  • The SEC has officially dropped its investigation into Uniswap Labs without any enforcement action.
  • Uniswap Labs maintains that it operates in full compliance with existing laws.
  • The decision is seen as a major win for DeFi and its future in the U.S. financial landscape.

Uniswap Labs, the developer behind the decentralized trading protocol Uniswap, has confirmed that the U.S. Securities and Exchange Commission (SEC) has dropped its multi-year investigation into the firm.

The SEC terminated its probe with no action for enforcement, a big victory for the decentralized finance (DeFi) sector. Regulatory focus on Uniswap began in April of 2024, when the company was issued a Wells notice by the SEC under its then-Chairman, Gary Gensler.

The notice claimed that Uniswap Labs may have violated securities laws by doing business as an unregistered broker of securities, clearing agency, or exchange. The claims, however, have been denied by Uniswap Labs, which asserted its protocol functions in a decentralized system and is not regulated under traditional finance.

Uniswap CEO Slams Past SEC Approach

Uniswap Labs founder and chief executive Hayden Adams embraced relief in seeing this ordeal come to an end. In a series of posts, Adams criticized the regulatory path of DeFi under the previous government, labeling this investigation as an attempt to drive decentralized exchanges toward a regulatory system in which they didn’t belong.

Adams asserted it cost years of time and tens of millions of dollars in legal expenses, describing it as “a punishment in itself.” He indicated DeFi is distinct in its operation when compared to traditional finance.

Contrasting centralized exchanges, however, is Uniswap, which allows users directly to trade in a peer-to-peer relationship, making markets more efficient and more transparent. He welcomed the change of direction under new leadership in the SEC and is optimistic about cooperating with regulators on setting clearly delineated and fair regulations for DeFi.

A Positive Shift for DeFi in the U.S.

Uniswap Labs sees this move by the SEC as a pivot moment for DeFi in the U.S. The company re-committed its support for regulatory discussions and emphasized an imperative for tailored regulations which take into account blockchain-based systems being decentralized.

The outcome of this case is expected to have a bearing on regulatory debates on DeFi in existence today. The industry players believe this ruling of the SEC reflects a more cooperative attitude under its new leadership, which can result in clearer regulations in favor of blockchain technology along with preserving consumer protections.

Having overcome this regulatory hurdle, DeFi community and Uniswap Labs can now focus on scaling its technology and constructing a more inclusive financial system. The decision validates the argument for decentralized exchanges not being regulated in a similar way as traditional intermediaries, setting a precedent for subsequent legal and regulatory discussions.

Related Reading | Is Bitcoin (BTC) Heading for $85K? Key Levels to Watch as Bears Dominate

Jupiter’s GOAT Plan: Meow Pledges 280M JUP for Future Gains

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  • Jupiter Exchange commits to independent audits, revealing all data on the new jup.com website.
  • Meow risks personal allocation, promising long-term team alignment and accountability as per the 2030 Pledge.
  • The DEX allocates 50% of revenue to an independent trust for strategic JUP accumulation.

Jupiter exchange’s anonymous co-founder, Meow, has laid out an extensive roadmap to bolster JUP’s position as the “GOAT” token, with an emphasis on governance, transparency, organic growth, and collaboration. Meow outlined the “GOAT framework” and announced three key initiatives to address community concerns and push long-term alignment.

First, the DEX will form an independent audit of founders, treasury, and tokens. This audit, conducted by a reputable agency, will ensure complete transparency, with results published on the new jup.com website. Secondly, Jupiter will establish the “Litterbox Trust,” allocating 50% of protocol revenues for the next two years to accumulate JUP for strategic purposes. This trust will operate independently, and see that users, holders, and the team are in harmony.

Finally, Meow proposed a personal commitment: using their entire 280 million JUP allocation to fund team incentives, with repayment and a 220 million JUP bonus depending on how the DEX fared by 2030. This initiative aims to align team members with the long-term success of Jupiter.

In other words, if the vote passes, i will receive zero JUP for the next 5 years, but will receive 500M jup in 2030 itself. If the community is unhappy with my performance for any reason before the 2030 milestone, the DAO will be able to veto and halt the bonus.

Catstanbul & Beyond: Jupiter’s Milestone-Driven Growth

Meow highlighted JUP’s journey, noting its evolution into the world’s largest active DAO and the successful completion of major milestones, including record-breaking airdrops, token burns, and the Catstanbul conference. These achievements addressed community concerns about high FDV and long-term roadmaps, fostering a healthier tokenomics structure.

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Jupiter’s GOAT Plan: Meow Pledges 280M JUP for Future Gains 2

Community members lauded the strategy, citing the founder’s long-term commitment as ‘extremely rare’ in the cryptocurrency space.

For Meow, JUP is more than an asset, he sees it as a community currency, strategic resource, and alignment engine. The “GOAT framework” reflects this vision, aiming to make JUP the gold standard for token integrity.

Solana’s Pump.fun Launch New AMM, Radium Crashes

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  • Pump.fun tests in-house AMM with $CRACK token, aiming for independent liquidity pools.
  • $CRACK token transfer of 1,000 confirms its role in the platform’s AMM beta testing.
  • Pump.fun’s AMM could shift Solana trading fees and reward token holders directly.

Pump.fun, the leading launchpad for Solana-based meme coins, is reportedly setting up its own Automated Market Maker (AMM) liquidity pools, which is currently in beta testing. This move will allow projects launched on the platform to migrate to its proprietary AMM instead of depending on existing decentralized exchanges like Raydium.

The development of an in-house AMM is seen as a strategic move to gain greater control over the liquidity and trading of tokens launched on its platform. Industry observers suggest the move would enable Pump.fun to capture a larger share of trading fees within the Solana ecosystem or implement mechanisms to directly reward token holders.

Crypto commentator, Marty Party stated that this move could significantly impact Raydium’s business. He also noted that Pump.fun plans to charge higher fees and offer more rewards to their token holders, which has already led to Raydium’s price dropping sharply by 22.9% to $3.30.

Pump.fun
Solana's Pump.fun Launch New AMM, Radium Crashes 4

“Raydium will need to add new features and come up with new ideas to keep up,” he stated in his post.

As per the post, the $CRACK token has become the inaugural test token added to Pump.fun’s AMM liquidity pool. This token serves as a crucial component in the platform’s beta testing phase, offering valuable data and insights into the functionality and performance of the new AMM.

Pump.fun’s $CRACK Token Test

The transaction highlighted confirms a transfer of 1,000 $CRACK tokens with the new AMM. This demonstrates the token’s active use within the testing environment.

The platform’s decision to develop its own AMM could have far-reaching implications for the Solana ecosystem. By providing projects with a dedicated liquidity solution, Pump.fun could potentially attract a larger number of developers and users to its platform. Furthermore, the ability to directly reward token holders through the AMM could create a more engaged and loyal community.

However, the success of Pump.fun’s AMM will depend on its ability to compete with established decentralized exchanges and attract sufficient liquidity. The platform will also need to address potential security concerns and ensure a seamless user experience. The coming weeks and months will be crucial in determining the impact of Pump.fun’s AMM on the Solana ecosystem and the broader cryptocurrency market.

Berachain Surges to $3.26B TVL Overtakes Arbitrum and Base

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  • Berachain’s TVL has surpassed $3.26 billion, making it the sixth-largest DeFi blockchain.
  • The network has outpaced Arbitrum’s $2.9 billion and Base’s $3.24 billion in TVL.
  • Berachain’s native token BERA is trading at $6.75 with a market cap of $715 million.

Berachain has reached a significant milestone, with its total value locked (TVL) exceeding $3.26 billion. This achievement places the Layer-1 blockchain ahead of Arbitrum and Base in the decentralized finance (DeFi) sector. As the sixth-largest DeFi network, Berachain continues to gain traction among users and investors.

Berachain’s TVL Growth and Market Position

According to DefiLlama data, the network’s TVL surpassed Arbitrum’s $2.9 billion and Base’s $3.24 billion. BERA’s expansion highlights its increasing adoption, solidifying its position among the top DeFi blockchains. Its growth reflects strong liquidity, rising protocol engagement, and heightened investor confidence.

At the time of writing, Berachain’s native token (BERA) is priced at $6.75. The market capitalization is $715 million, while the fully diluted valuation (FDV) reaches $3.3 billion. These figures emphasize the network’s increasing relevance in the competitive blockchain landscape.

Key Protocols Driving Berachain’s Expansion

Several DeFi protocols contribute significantly to BERA’s rapid growth. Liquid staking platform Infrared Finance leads with a TVL of $1.52 billion, strengthening network security and liquidity. Decentralized exchange Kodiak follows with $1.12 billion, while yield farming protocol Concrete holds nearly $800 million.

The rising TVL suggests higher user participation in Berachain’s ecosystem. Strong protocol engagement signals robust on-chain activity and improved capital efficiency. These factors enhance the blockchain’s attractiveness for both retail and institutional investors.

Despite Berachain’s surge, Ethereum remains the dominant DeFi network, maintaining a TVL of $58 billion. Solana ranks second with $8 billion in locked assets, controlling a 7.45% market share. BERA’s continued momentum positions it as a rising competitor in the DeFi landscape.

Factors Behind Berachain’s Growing Adoption

BERA has received strong backing from major investors, further fueling its expansion. Framework Ventures co-led its $100 million Series B funding round, signaling confidence in the network’s long-term potential. The blockchain’s proof-of-liquidity consensus model also strengthens its economic framework.

This mechanism requires users to stake BERA and direct liquidity into core DeFi protocols. The model ensures continuous liquidity and incentivizes user participation by keeping transaction fees within the ecosystem. The approach differentiates Berachain from other Layer-1 networks.

A recent token airdrop further increased network activity and adoption. On February 6, the Bera Foundation distributed 80 million BERA tokens to eligible users. Valued at $632 million, the airdrop ranks among the largest in the industry.

DeFi Market Trends and Future Outlook

The overall DeFi market has experienced a resurgence in recent months. Total DeFi deposits reached $60 billion earlier this month, marking the highest level since August 2022. Growing liquidity and higher yields have contributed to this recovery.

Daily trading volumes on DeFi protocols have also increased, surpassing $7.3 billion in early January. The market capitalization of DeFi-related tokens has climbed from $72 billion to $77 billion since December. These trends indicate renewed confidence and capital inflow into the DeFi sector.

Berachain’s rising TVL highlights its growing influence in the DeFi space. Its unique economic model and strong investor support continue to drive adoption. As the network expands, it could challenge larger competitors in the blockchain ecosystem.

Solana $2.5B DEX Volume Plummets, Winners & Losers Revealed

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  • Solana DEX trading volume hit a low of $2.517 billion on February 16th, a significant drop.
  • Raydium and Orca DEX volumes plummet, while Meteora sees an 18.65% increase.
  • SOL approaches the critical support zone between $160 and $120, a break could lead to $96-$84.

Solana’s decentralized exchange (DEX) ecosystem has been on a significant downturn in trading activity. Data from DeFiLlama shows that on February 16th, the total trading volume on SOL DEXs hit over $2.5 billion, lowest so far since mid-December of 2024. This continuous downward trend indicates a potential decrease in user engagement and liquidity and is a worrying trend for Solana’s DeFi sector.

Diving deep at individual DEX performance reveals a mixed result. Raydium and Orca, two leading Solana-based DEXs, have recorded substantial declines in trading volume over the past week, with drops of 39.16% and 41.42%, respectively.

Amidst the struggles of these platforms, others continue to thrive. For instance, Meteora, another DEX on the Solana network, has defied the market odds to post an 18.65% increase in trading volume. Such varying results showcase the dynamic nature of the DeFi landscape.

Solana’s Price at Crucial Juncture, $120 Support in Focus

In terms of price, Solana’s native token, SOL is nearing a crucial support zone between $160 and $120. Analysts believe that SOL’s ability to hold within this range will determine its short-term trajectory. A sustained period of consolidation within this zone would signal continued support and potentially pave the way for a recovery.

Solana
Source: BB Crypto

However, a break below this key support zone could lead to a more significant price correction. Analysts caution that if SOL breaches the $120 level, the next potential support area lies between $96 and $84. Any failure to hold above this zone could trigger further downward pressure and the possibility of a prolonged bearish trend. Traders are advised to exercise caution and closely monitor SOL’s price action as it approaches this critical juncture.

The combination of declining DEX volumes and a looming price test creates a challenging environment for Solana. The coming days will be crucial in determining whether the network can regain its momentum or if it faces a deeper correction.

Lido’s Urgent Message For wstETH Holders

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LIDO, an Ethereum staking solution, has issued a notice to its wstETH holders, recommending the prompt withdrawal of tokens from Liquity’s V2 Stability Pool (“Earn”). This advisory comes as the Liquity team investigates the potential issue. Lido stressed that this is a precautionary measure and advise users to check official Liquity channels for updates on the investigation.

Liquity protocol, a decentralized borrowing platform, is actively investigating a potential issue in its V2 Stability Pools, known as “Earn.” As the protocol continues to function without any issue, no user impact is currently known, and the team is proceeding cautiously.

As a preventive measure, Liquity advises V2 users to close their Stability Pool (“Earn”) positions. This recommendation stems from the team’s commitment to prioritizing user safety and security, despite little knowledge of an confirmed impact.

While the issue is on the Liquity platform, Lido is proactively informing its users to ensure their assets’ safety. The staking protocol will continue to monitor the situation and provide further updates as necessary.

The Liquity situation underscores the need for robust security measures and thorough audits in DeFi protocols. This reinforces thesignificance of Lido’s focus on security in its V3 upgrade.

Lido Highlights V3’s Enhanced Security Features

The staking protocol recently unveiled V3, a major upgrade allowing more flexible and customized stETH staking. The core of V3 is stVaults, modular “staking vaults” that facilitate stakers, node operators, and protocols to connect, define fee structures, manage validation setups, and optimize risk/reward profiles.

LIDO
Lido's Urgent Message For wstETH Holders 7

Lido V3 offers a wide range of staking needs to various parties. For institutions, stVaults provides customizable setups with control over node operators, reward mechanisms, and deposit/withdrawal access. There is also an opt-in approach to restaking, allowing participation in restaking trends without imposing shared risks across the stETH ecosystem.

Lido V3’s design promotes healthy competition among validators and mitigating governance and slashing risks. This upgrade preserves decentralization, security, and easy access to stETH liquidity, strengthening the Ethereum network. Lido V3 is non-custodial and highly customizable, giving builders the tools to create diverse staking solutions.

CAKE’s 50% Pump Hits Wall: Can It Break $2.77?

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  • CAKE faces resistance at $2.77, struggling to break through amid market volatility.
  • Analysts warn of potential sharp declines following rapid market surges.
  • Traders are advised to avoid chasing prices and monitor key support levels.

CAKE, the native token of PancakeSwap, faces resistance above $2.77 after a 50% surge driven by renewed BNB Chain enthusiasm. The initial surge followed bullish comments from Binance’s co-founder Changpeng Zhao (CZ) and his recent meme coin tease.

A common pattern observed in market behavior is the retracement to a support level after breaking through a resistance level. While such retracement confirms the new support level, in case of CAKE, the $2.77 zone is proving to be significant hurdle.

CAKE
CAKE's 50% Pump Hits Wall: Can It Break $2.77? 9

If the token fails to break through this resistance point, analysts suggest a potential downward trend for CAKE. Traders are therefore advised to exercise caution and avoid chasing the rising price, as this could lead to significant losses if the market experiences a downturn.

The uncertainty surrounding CAKE’s ability to break through the resistance highlights the risks associated with trading in a volatile market.

100M Transactions by 2025? CZ’s BNB Chain Vision Sparks CAKE Frenzy

The other day, CAKE alongside the BNB Chain-based tokens were back in the spotlight. Zhao recently projected 100 million transactions on the BNB Chain per day by the end of 2025. CZ also mentioned introducing sub-second block finality, gasless transactions, and smart wallets to the BNB Chain this year.

As a leading BNB Chain DEX, the frenzy triggered an influx of trading volume. Whales added $42 million to their portfolios. Another notable tidbit is since its 2020 launch, the token’s supply has decreased from 450 million to 379 million, with 71 million CAKE burned. This deflationary model has also stirred community’s attention.

There is an anticipation based on recent tweets from@cz_binance that there is something good going to happen on $BNB chain. As @PancakeSwap is the leading DEX on BNB and will mostly like have higher volume as more people flock to trade tokens on BNB chain, it could bring more value and TVL to flow towards it. The same goes to other tokens that are native on BNB chain Enjoy the rally till BNB season happens!!

While BNB Chain optimism and CZ’s bullish comments fueled an initial surge, the token’s price action hinges on breaking the $2.77 resistance. Traders should proceed cautiously, mindful of market volatility and the possibility of a downturn, despite positive long-term projections for the BNB Chain ecosystem.

DeFi Boom: Chainlink’s CDY Index Reveals Surging Yields

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  1. DeFi yields surged in Q4 2024, with USDC and USDT supply yields averaging 8.37% and 7.13%, respectively.
  2. The CDY Index helps compare DeFi lending yields with traditional markets like Treasury bonds.
  3. DeFi protocols and token issuers can use the CDY Index to optimize market competitiveness.

The decentralized finance (DeFi) sector witnessed a significant uptick in activity during Q4 2024, with rising digital asset prices fueling borrowing and lending markets. As traders leveraged their assets, borrow utilization rates soared on platforms like Aave v3, often surpassing optimal levels.

This increased demand led to a sharp rise in stablecoin supply yields, as the Chainlink DeFi Yield (CDY) Index recorded an average USDC yield of 8.37% and USDT at 7.13%, nearly doubling from the previous quarter. The CDY Index aggregates data from top lending markets, providing a clear picture of yield trends across DeFi.

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Notably, decentralized finance lending yields outperformed traditional Treasury bond yields, emphasizing the growing appeal of crypto-based financial products. Despite this, the nature of DeFi lending remains distinct, as yields fluctuate based on market activity rather than being fixed like Treasury bonds.

Asset Managers Gain Strategic Insights from CDY Index

With DeFi lending markets valued at an estimated $50-60 billion in value at the beginning of 2025, asset managers increasingly use information drawn from the CDY Index. Ethereum continues to dominate, with about 60% of its market under its grasp. Under bullish demand for lending, lending yields become a feasible source for yield-seeking investors for digital assets.

However, decentralized finance is a segmented marketplace, with yield variation between platforms including but not limited to, Aave, Compound, and Spark. CDY Index simplifies yield tracking, with asset managers in a position to effectively contrast yields with little to no searching involved. With a model backed in data, investors can make smart investments in a shifting marketplace with ease.

CDY Index Enhances DeFi Protocol Competitiveness

For DeFi protocols, competitive yields have to be sustained in a manner that attracts liquidity in. CDY Index enables platforms to set ideal yield settings, balancing competitiveness with not over-risks for users. By following real-time yield trends, protocols can dynamically adjust incentives in a manner that will maintain growth.

The report compared two nameless DeFi platforms offering lending in USDC. One, an older pioneer, maintained a ~10% level of supply, with a smaller but rising competitor offering ~15%. The latter saw a 190% Q4 expansion in its USDC value locked (TVL), with growing yields acting as a catalyst for use.

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Stablecoin issuers profit in the same direction. USDC’s value in the marketplace rose from $35.6 billion to $43.9 billion during Q4, in proportion to its high-yielding lending yields. Meanwhile, less-yielding stablecoins saw little development in terms of adoption. As DeFi keeps growing, CDY Index is paramount for protocols and token issuers that seek to maximize yields and attract users.

Related Reading: FDIC Eases Crypto Regulations, In a Bold Move to Empower Banks

AAVE DESTROYS the “Utility Token” Myth, Here’s How

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  • Aave proves a strong product-token correlation, defying “utility token” skepticism.
  • Ethereum Foundation invests $167M in DeFi via the DeFi protocol, boosting institutional confidence.
  • Aave v3 deployment on Sonic Labs and v4 upgrade expand protocol dominance.

Aave forges ahead as it defies the common crypto narrative of a weak correlation between a project’s product usage and its token price. Unlike struggling “utility tokens,” the DeFi protocol consistently maintains a strong connection, offering hope to developers amidst the prevalence of meme coin launches with minimal effort.

Often in crypto there’s tiny correlation between a project’s product usage <> its token price. It’s the myth of ‘utility tokens’. AAVE however, is consistently proving doubters wrong. That should give founders hope in the sea of memecoin launches with minimal effort.

The decentralized protocol’s recent achievements further solidify its position in the DeFi space. Recently, Aave v3 was successfully deployed on Sonic Labs, with contributions from Andre Cronje, marking a significant milestone.

Last December, a proposal was laid to bring the $22 billion lending market to Sonic, a layer-1 blockchain platform. Industry watchers believe, “Fee Monetization has the potential to be an additional income source for Aave.”

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AAVE DESTROYS the "Utility Token" Myth, Here's How 13


In addition to that, the V3 has also been deployed on the Aptos testnet, the first non-EVM deployment of the DeFi Protocol. This testnet phase aims to validate the V3’s safety, stability, and performance on Aptos ahead of a potential mainnet launch.

Aave Sees $167M Ethereum Foundation Investment

Furthermore, the Ethereum Foundation’s strategic deployment of 50,000 ETH (approximately $167 million) into DeFi, starting with Aave, underscores growing institutional adoption. This move represents the first major instance of an institutional treasury directly utilizing protocols it helped build.

The DeFi protocol’s current market capitalization stands at $4.5 billion, reflecting a 54% decrease from its all-time high. Despite this, World Liberty Financial continues to hold a substantial $6.3 million position, demonstrating continued confidence in the protocol. The upcoming v4 upgrade is expected to further expand the protocol’s dominance.

Institutional adoption of Aave is accelerating, evidenced by the Ethereum Foundation’s treasury operations and Chainlink’s smart value recapture integration. The past 24-hour trading volume for the DeFi reached $435 million, indicating strong market activity and liquidity. Furthermore, its consistent performance and growing adoption suggest a promising future for the protocol.