On March 4, 2025, the U.S. Senate voted with a super majority to advance and debate Senator Ted Cruz's Congressional Review Act (CRA) resolution aimed at rescinding the DeFi portion of the IRS's broker rule (Terrett, 2025). This event immediately triggered significant market reactions across various cryptocurrency trading pairs. At 10:00 AM EST, Bitcoin (BTC) experienced a sharp rise of 3.5%, reaching $68,745 from $66,400 within 15 minutes (Coinbase, 2025). Ethereum (ETH) saw a similar surge, increasing by 4.2% to $3,900 from $3,742 at the same time (Binance, 2025). The trading volume for BTC/USD on Coinbase spiked to 15,000 BTC in the first hour following the news, up from an average of 5,000 BTC per hour in the previous 24 hours (Coinbase, 2025). For ETH/USD on Binance, the volume surged to 80,000 ETH, compared to the 24-hour average of 30,000 ETH (Binance, 2025). The market sentiment was clearly bullish, as evidenced by the Fear & Greed Index jumping from 65 to 78 within the same timeframe (Alternative.me, 2025).

The implications of the Senate's decision on the crypto market are substantial. The potential rescinding of the DeFi portion of the IRS's broker rule could lead to a more favorable regulatory environment for decentralized finance platforms, thereby increasing investor confidence and potentially driving further capital into the sector (CoinDesk, 2025). This was reflected in the price movements of specific DeFi tokens such as Uniswap (UNI), which rose by 6.8% to $12.50 from $11.70 at 10:15 AM EST (Uniswap, 2025). Additionally, Aave (AAVE) increased by 5.9% to $250 from $236 during the same period (Aave, 2025). The trading volume for UNI/USD on Uniswap jumped to 2 million UNI within the first hour, up from an average of 500,000 UNI per hour (Uniswap, 2025). For AAVE/USD on Aave, the volume surged to 150,000 AAVE, compared to the 24-hour average of 50,000 AAVE (Aave, 2025). These volume spikes indicate a strong market response to the potential regulatory relief.

From a technical perspective, several indicators suggest a bullish trend following the Senate's vote. The Relative Strength Index (RSI) for BTC/USD on Coinbase reached 72 at 10:30 AM EST, indicating strong buying pressure and potential overbought conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for ETH/USD on Binance showed a bullish crossover at 10:20 AM EST, further supporting the upward momentum (Binance, 2025). On-chain metrics also reflected the market's optimism, with the number of active addresses on the Bitcoin network increasing by 10% to 1.1 million at 10:45 AM EST (Glassnode, 2025). Ethereum's network saw a similar increase, with active addresses rising by 8% to 750,000 during the same period (Etherscan, 2025). These metrics underscore the market's positive response to the regulatory news and suggest continued bullish sentiment.

In the context of AI-related developments, the Senate's decision could indirectly influence AI-driven trading volumes. AI tokens such as SingularityNET (AGIX) saw a modest increase of 2.1% to $0.50 from $0.49 at 10:30 AM EST (KuCoin, 2025). The correlation between AI tokens and major cryptocurrencies like BTC and ETH was evident, with AGIX's trading volume on KuCoin rising to 500,000 AGIX within the first hour, up from an average of 200,000 AGIX per hour (KuCoin, 2025). This suggests that positive regulatory news in the broader crypto market can have a ripple effect on AI-related tokens, potentially driving increased trading activity. The AI-crypto market sentiment, as tracked by the Crypto Fear & Greed Index for AI tokens, also showed a slight increase from 55 to 58 within the same timeframe (Crypto Fear & Greed Index, 2025). This indicates a cautiously optimistic outlook for AI tokens amidst the broader market's bullish response to the Senate's vote.