Amid significant regulatory developments in the crypto industry, the U.S. House of Representatives voted to invalidate a bill that threatens the privacy property of the Decentralized Finance (DEFI) agreement.
One of the most important governance suggestions for Solana Network has been rejected in the wider crypto space. It attempts to implement a mechanism to reduce the inflation rate of Solana by about 80%.
U.S. House of Representatives follows Senate to pass resolution to kill IRS Defi Broker Rule
The U.S. House of Representatives voted to issue a rule that requires a decentralized financing (DEFI) agreement to report to the IRS.
March 11, House of Representatives vote 292 for and 132 violates the motion to repeal the so-called IRS Defi Broker rules Designed to expand Existing IRS reports requirements to cryptocurrency.
All 132 votes remain ruled by the Democrats. But 76 Democrats, along with Republicans, abolished the act.
This is after the Senate March 4 votesee it over 70 to 27.
The rule would force Defi platforms, such as decentralized exchanges, to disclose the total proceeds from cryptocurrency sales, including information about the taxpayers involved in the transaction.
“Def’s agent rule violates the privacy of tens of millions of Americans, hinders the development of important new industries in the United States, and will overwhelm the IRS,” said Mike Carey, a Republican representative who filed the motion to repeal the bill after the vote.
After the vote, Congressman Mike Carey spoke. source: Mike Carey
Solana proposes to reduce inflation by up to 80% failed
Stakeholders rejected a proposal to dramatically change Solana’s inflation system, but are hailed as a victory in the cyber governance process.
“Even if our proposal is technically defeated by votes, it is a major victory for the Solana ecosystem and its governance process,” Comment Multicoin Capital co-founder Tushar Jain will be on March 14.
Of the 910 validators, about 74% of the fixed supply voted on the Simd-228 proposal, but only 43.6% voted for it, with 27.4% voted, abstention 3.3%, abstention 3.3%, according to Perform dunes analysis. It requires 66.67% of the participating votes to pass, and only 61.4%.
Jain added that this is the number of participants and market capitalization of any ecosystem, chain or network, and it is the largest crypto governance vote ever.
“It’s a meaningful extension of stress test – a social rather than a technical stress test – despite the hierarchy of differences and interests, the network passed.”
The “Macro Correction” Section of Bitcoin’s $70,000 Retracement Bit – Analysts
While cryptocurrency investors are concerned about the early arrival of a bear cycle, the potential backtrack of Bitcoin may be an organic part of the current bull market.
Bitcoin (BTC) fell more than 14% in the past week, closing at around $80,708 after investors were disappointed by the lack of direct federal Bitcoin investment in President Donald Trump’s March 7 executive order. It outlines plans to create Bitcoin reserves using cryptocurrencies seized in government criminal cases.
Aurelie Barthere, chief research analyst at Nansen Crypto Intelligence Platform, said that despite the decline in investor sentiment, cryptocurrencies and global markets remain in a “macro correction” state as part of the bull market.
BTC/USD, 1 month chart. Source: Cointelegraph
Analysts told Cointelegraph that most cryptocurrencies break key support levels, making it difficult to estimate the next key price level.
“This is a macro correction (like in the future, U.S. technology will drop 3% in the future), so we have to monitor BTC. The next level will be $71,000 to $72,000, which is the top of the pre-election trading range.”
“We are still making corrections in the bull market: stocks and cryptocurrencies are aware and are pricing; tariff uncertainty and fiscal cuts for a while, without the Fed. Fears of recession are popping up.”
Call for stricter rules for political members following $4 billion Libra collapse
Industry voices warn that politically recognized cryptocurrencies must adopt stronger investor protection and liquidity protection measures to prevent another major market crash.
Investor sentiment remains shaken after the Libra token recognized by Argentina President Javier Milei, suffering a $4 billion loss in market capitalization due to insiders’ cash.
At least eight insiders, according to blockchain analytics firm DWF Labs Wallet withdraws $107 million in liquiditytriggering a massive crash.
Source: Kobeissi Letter
To avoid similar collapses, tokens with presidential approval will require stronger security and economic mechanisms, such as liquidity locking or making tokens in liquidity libraries unsold for pre-selling periods, DWF Labs wrote in a report with CoIntelegraph.
The report notes that the tokens of high-profile leaders also need to be launched restrictions to limit the participation of cryptobots and large holders or whales.
“Restricting robots and whale activity is crucial to limiting the impact on individuals who are internally informed,” said Andrei Grachev, managing partner at DWF Labs.
Super fluent UPS margin requirement after liquidation loss of $4 million
Hyproliquid, a blockchain network specializing in trading, raised margin requirements for traders after millions of dollars lost to traders’ liquidity pools (eth) The Internet said.
On March 12, a trader deliberately liquidated about $200 million in Ether shares, causing the super-liquid liquidity pool HLP to lose $4 million, thus relaxing the transaction.
Starting March 15, Hyperliper will require traders to maintain at least 20% of the collateral edge in certain open positions to “reduce the whole-body impact of large positions on the hypothetical market impact of closures.”
The event highlights the growing pains of encountering hyperliquidity, which has become Web3’s most popular leveraged permanent trading platform.
Super liquid has adjusted traders’ margin requirements. source: Super fluid
Hyperliquid said the $4 million loss was not from exploitation, but the predictable outcome of its trading platform mechanism under extreme conditions.
Defi Market Overview
Most of the 100 largest cryptocurrencies with market cap ended in red for a week, according to Cointelegraph Markets Pro and TradingView.
Of the top 100, Hedera (HBAR) Tokens fell by 24%, marking the biggest weekly decline, followed by Jasmycoin (Jasmycoin) which has dropped by more than 21% over the past week.
The total value is locked in defi. Source: Defillama
Thank you for reading our summary of the most influential Defi development of the week. Join us next Friday for more stories, insights and education about this dynamic space to move forward.
