Trump Signs Resolution to Overturn IRS Rule on DeFi Platforms

President Donald Trump has signed a resolution repealing a controversial IRS rule requiring DeFi platforms to report crypto transactions, marking the first legal milestone for the crypto industry in the U.S.

Trump Signs Resolution To Overturn Irs Rule On Defi Platforms

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Trump officially repealed the rule by signing the resolution on April 10 — a move that marks the first time a crypto-related bill has ever been signed into U.S. law, according to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.

Defi Broker Regulations Unnecessarily Stifle American Innovation
Defi Broker Regulations Unnecessarily Stifle American Innovation

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.

(2 votes)

3.5/5

(2 votes)

Latest

Ethereum Surges Again As Supply Becomes Increasingly Scarce

News | Altcoin | Editor Choice

Ethereum Surges Again as Supply Becomes Increasingly Scarce

Ethereum is entering a phase of supply scarcity as hundreds of thousands of ETH are withdrawn from Binance, fueling expectations of a powerful price breakout in the near future.

Us China Trade Truce Sparks Bitcoin Rally

News | Bitcoin | Editor Choice

US-China Trade Truce Sparks Bitcoin Rally

The easing of US-China trade tensions has injected new momentum into the cryptocurrency market, propelling Bitcoin’s rally ahead of a pivotal week filled with major economic and diplomatic events.

Whales Dump Xrp Can Ripple Still Aim For The $5 Breakout

News | Altcoin | Editor Choice

Whales Dump XRP: Can Ripple Still Aim for the $5 Breakout?

XRP faces a defining moment as whales unleash massive sell-offs, leaving investors anxious over whether the token will rocket to $5 or crash back down to $2.

Bnb Surges After Trump Pardons Cz, Traders Shout “up Only”

News | Altcoin | Editor Choice

BNB Surges After Trump Pardons CZ, Traders Shout “Up Only”

BNB’s price surged right after U.S. President Donald Trump pardoned Binance founder Changpeng Zhao, fueling a wave of excitement and speculation that the long-awaited “altcoin season” may be about to begin.

Satoshi Era Bitcoin Whale Awakens After 14 Years

News | Bitcoin | Editor Choice

Satoshi-Era Bitcoin Whale Awakens After 14 Years

A “Satoshi-era” Bitcoin whale has suddenly awakened after more than 14 years of silence, sparking a wave of speculation about the real motive behind its move of 150 BTC worth tens of millions of dollars.

Screenshot 2025 10 20 091338