Key Takeaways
- The U.S. Senate and House voted to overturn Biden-era tax reporting rules for DeFi.
- Ethereum (ETH) remains the leading DeFi chain, with over $51 billion in total value locked.
- U.S. spot Ethereum ETF issuers are pushing to enable staking for investors.
The outlook for decentralized finance (DeFi) in the U.S. has never been more optimistic as Donald Trump’s pro-crypto administration rolls back restrictive policies.
Through executive orders and regulatory shifts, his administration is reshaping the landscape for DeFi and staking.
Crypto Staking’s Slow Comeback
After years of regulatory uncertainty, crypto staking is cautiously reemerging in the U.S.
Under Joe Biden’s administration, the industry once faced aggressive enforcement actions, leading to fines, shutdowns and uncertainty for investors and businesses.
However, the political and regulatory landscape has shifted, opening the door for staking services to return—albeit at a measured pace.
Crypto Staking Gets a Second Wind
In February 2023, the SEC charged Kraken for failing to register its staking-as-a-service program as a securities offering. Kraken settled for $30 million without admitting wrongdoing. Coinbase also faced scrutiny over staking services.
Despite these crackdowns, Kraken relaunched its U.S. staking program on Jan. 30, 2025—an early sign that crypto regulations may ease under Trump’s SEC.
Other exchanges followed suit. Uphold, which had voluntarily suspended staking in 2023 due to regulatory uncertainty, restored the service on March 3, 2025.
Meanwhile, in June 2024, the SEC sued Consensys, accusing it of selling unregistered securities through MetaMask staking. However, on Feb. 28, 2025, both parties reached an agreement in principle to dismiss the case.
This regulatory shift bodes well for Ethereum ETFs. While ETH ETFs launched under Gary Gensler’s SEC, they were prohibited from offering staking services. Now, fund issuers, exchanges and even the SEC are working to change that.
Repealing Biden-Era DeFi Tax Rules
The biggest win for DeFi came on March 5, 2025, when the U.S. House and Senate voted 70-27 to repeal tax reporting rules imposed under Joe Biden.
These regulations, introduced in November 2021, classified DeFi entities as “brokers” and required them to collect and report extensive user data to the Internal Revenue Service (IRS).
This put DeFi on the back foot as it grated against the ethos of decentralized, privacy-preserving technologies. Moreover, it required protocols and developers to implement know-your-customer (KYC) procedures.
Smaller platforms that couldn’t afford to do so either ceased U.S. operations or left entirely. Notably, this saw leading decentralized exchange (DEX) Uniswap geo-block U.S. IP addresses to avoid regulatory actions, though it wasn’t able to for very long.
Consequently, the U.S. crypto industry became less competitive as talent and entrepreneurs flocked to favorable shores such as Switzerland or Singapore.
A Pro-Crypto White House
Capping off this wave of regulatory reversals, the White House hosted its first-ever crypto summit on March 7. The event, attended by key industry leaders, underscored Trump’s commitment to undoing Biden-era policies and fostering a crypto-friendly environment.
While some regulatory hurdles remain, many are expected to be addressed once Paul Atkins is sworn in as SEC Chairman. Until then, pro-crypto lawmakers and officials at the highest levels of government have continued pushing forward.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
