Friday🌑Web3 Latest Update: Trump Blocks IRS Crypto Rule, Ripple-SEC Settlement, Arizona’s Bitcoin Bill, and Pectra Security Talk

Here’s your Web3 Weekly Update, covering the biggest headlines shaping the blockchain and crypto space. From major political moves to key industry developments, this week brings big news: former President Trump has signed a bill reversing the IRS’s expanded crypto broker rule, Ripple and the SEC have reached an agreement that cancels the April 16 filing, Arizona’s pro-crypto mining bill advances to the Governor’s desk, and Ethereum co-founder Vitalik Buterin responds to rising security concerns around the upcoming Pectra upgrade. Let’s dive into the details.

1. Trump kills IRS crypto broker expansion

Former President Donald Trump has signed a bill that overturns the IRS’s expanded definition of crypto brokers, which previously included DeFi platforms and wallet providers. This legislative move is seen as a major win for the crypto industry, which argued that the broader rule would have stifled innovation and placed unfair reporting burdens on decentralized platforms. By nullifying this rule, lawmakers aim to support blockchain innovation while refining regulatory clarity. The decision reflects a growing political divide over how to regulate digital assets and marks a significant moment in the ongoing debate surrounding crypto policy in the United States.

Trump signs bill to nullify expanded IRS crypto broker rule

(Reuters) -U.S. President Donald Trump on Thursday signed into law a bill to overturn a revised rule from the Internal Revenue Service that expanded the definition of a broker to include decentralized cryptocurrency exchanges, according to a statement from the White House. In the last weeks of the Biden administration in December, the IRS updated its crypto tax reporting rule that it had finalized earlier in 2024 to clarify that its new guidelines would also apply to decentralized finance - or DeFi - exchanges. Both the House of Representatives and the Senate in March voted to nullify the revision through the Congressional Review Act, which allows Congress to reverse new federal rules with a simple majority.

Yahoo FinanceHannah Lang

2. Ripple & SEC settle — April 16 filing dropped

Ripple and the U.S. Securities and Exchange Commission (SEC) have reached a tentative agreement that cancels the anticipated April 16 court filing, signaling a potential resolution to their long-running legal battle. This case, which began in 2020, has centered on whether Ripple’s XRP token is a security. The latest development pauses the appeals process as both parties work toward a final settlement. While the agreement is not yet finalized, it represents a significant shift in tone from previous proceedings and could bring long-awaited clarity to XRP’s regulatory status, potentially impacting the broader crypto landscape in the United States.

Ripple and SEC Reach Agreement — April 16 Filing Canceled

Ripple SEC joint motion pauses appeals in ongoing lawsuit. Discover implications of this crypto legal settlement and XRP regulatory news.

Watcher GuruVladimir Popescu

3. AZ’s Bitcoin mining bill hits Governor’s desk

Arizona’s pro-crypto momentum continues as House Bill 2342 advances to Governor Katie Hobbs’ desk after a 17-12 Senate vote. The bill aims to protect the rights of individuals to mine Bitcoin and operate blockchain nodes from their homes without facing restrictive regulations. Supporters say it promotes technological innovation and secures individual freedoms in the digital economy, while critics voice concerns about energy use and oversight. If signed into law, Arizona would join a growing number of U.S. states embracing crypto-friendly policies, further shaping the regulatory landscape for blockchain technologies and at-home crypto mining operations.

Arizona’s Bitcoin Mining Bill Advances to Governor’s Desk - Decrypt

Arizona moves to shield blockchain and AI computing at home while racing other states on Bitcoin reserve bills.

DecryptVismaya V

4. Vitalik tackles Pectra security concerns

Ethereum co-founder Vitalik Buterin has responded to growing concerns surrounding the network’s upcoming Pectra upgrade, emphasizing its focus on user safety and wallet control. The Pectra update aims to improve account abstraction and enhance the security of Ethereum wallets by giving users more flexible recovery options and better protection against hacks. Buterin reassured the community that security remains a top priority and that developers are working to address potential risks before the upgrade rolls out. His comments aim to ease fears and highlight Ethereum’s continued commitment to building a safer, more user-friendly blockchain experience as the ecosystem evolves.

Vitalik Buterin responds to security concerns over new Pectra upgrade

Ethereum co-founder Vitalik Buterin reminds users to rely on contracts that have been reviewed by trusted wallet teams amidst security concerns circulating regarding the latest upgrade

crypto.newsTrisha Husada

As the Web3 world continues to evolve, these developments highlight the growing impact of crypto in both policy and technology. From legal shifts to blockchain upgrades, staying informed is key. Be sure to subscribe to our newsletter for real-time updates, expert insights, and all the buzz shaping the future of Web3. Until next Friday—keep exploring, keep building. 🚀

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