On March 5, 2025, the cryptocurrency landscape experienced significant developments:
U.S. Senate Overturns IRS DeFi Broker Rule: In a decisive 70-27 vote, the Senate repealed the IRS's DeFi broker rule, which had been criticized for hindering financial innovation. This move is seen as a victory for the crypto industry, aiming to foster a more accommodating regulatory environment.
President Trump's Crypto Strategic Reserve Proposal: President Trump announced plans to establish a federal cryptocurrency reserve, potentially including assets like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). This initiative aims to legitimize the crypto sector and diversify government assets, though it has sparked debate among experts regarding its potential risks and benefits.
XRP Price Movement: Following President Trump's mention of XRP in the proposed crypto reserve, its price rose by 1.8% to $2.52. However, the market remains cautious due to upcoming U.S. tariffs on Canada and Mexico, leading to uncertainty in riskier investments like cryptocurrencies.
These events underscore the dynamic nature of the cryptocurrency market, influenced by regulatory decisions and governmental initiatives.
