U.S. President Donald Trump has signed a congressional resolution repealing a controversial rule from the Biden administration that would have required decentralized finance (DeFi) platforms to report crypto transactions to the Internal Revenue Service (IRS).
The rule, originally set to take effect in 2027, would have expanded existing IRS reporting requirements to include DeFi platforms, compelling them to disclose gross proceeds from crypto transactions, including taxpayer information.
Trump officially repealed the rule by signing the resolution on April 10 — a move that marks the first time a crypto-related bill has ever been signed into U.S. law, according to Representative Mike Carey, a key supporter of the measure.
“The DeFi Broker Rule unnecessarily stifled American innovation, infringed on the privacy of everyday Americans, and would have overwhelmed the IRS with filings it isn’t equipped to handle during tax season,” Carey stated.
Critics argued that the rule placed an excessive burden on decentralized platforms and would stifle growth and innovation in the DeFi space. Meanwhile, supporters such as Democratic Representative Lloyd Doggett warned that repealing the rule would create loopholes for wealthy individuals to evade taxes.
The resolution made swift progress through Congress: it was approved by the House Ways and Means Committee on February 25, passed the House on March 11, and was approved by the Senate on March 26. The Senate had earlier passed a version of the resolution in early March, but constitutional requirements regarding the origination of budget bills meant the House needed to pass its own version.Trump’s signature had been widely anticipated after David Sacks, the White House’s AI and crypto advisor, announced in March that the president supported repealing the rule.
Industry Breathes a Sigh of Relief
Kristin Smith, CEO of the Blockchain Association — a leading crypto advocacy group — expressed relief following the resolution’s passage: “Now, the industry’s innovators, builders, and developers can breathe again,” she said.
“This rule was poised to destroy the U.S. crypto industry; it was a sledgehammer to the engine of American innovation,” she added.
Previously, the Blockchain Association filed a lawsuit against the IRS, the Treasury Department, and then-Treasury Secretary Janet Yellen, claiming the rule was unconstitutional and exceeded legal authority.
The Trump administration has taken a more crypto-friendly stance, working to rein in the Securities and Exchange Commission (SEC), which had adopted a more aggressive regulatory posture under former Chair Gary Gensler during the Biden era.
The SEC has since dropped multiple enforcement actions and investigations against crypto companies and has launched consultations with the industry to determine how best to regulate the space.
