Trump Officially Signs Bill to Repeal IRS Tax Reporting Rules for DeFi Platforms
President Trump has officially signed a bill repealing the IRS’s controversial “DeFi broker rule,” which imposed tax reporting responsibilities on DeFi platforms. The legislation previously garnered overwhelming bipartisan support in both chambers, symbolizing a shift towards a more favorable regulatory attitude in the U.S. and is seen as a significant turning point for promoting innovation in digital assets.
(Background: The repeal of the IRS “DeFi broker rule” has been sent to Trump for signing into law, marking a major victory for the cryptocurrency industry)
(Supplementary information: Major Victory for DeFi: U.S. House Votes to Repeal IRS DeFi Broker Rule)
U.S. Regulatory Attitude Towards Crypto Industry Undergoes Critical Shift
The U.S. government’s stance on the cryptocurrency industry is undergoing a crucial transformation. President Trump today officially signed the bill that overturns the controversial IRS “DeFi broker rule” introduced during the final days of the Biden administration. This move not only signifies the first instance of a legally binding cryptocurrency-specific law at the federal level but is also regarded as a pivotal moment for fostering innovation in digital assets.
First Cryptocurrency-Specific Law Takes Effect
This bill was introduced by Republican Senator Ted Cruz under the Congressional Review Act (CRA) and quickly gained overwhelming bipartisan support: it passed the Senate with a vote of 70 to 28, and the House also approved it by a supermajority of 292 to 132. The bill aims to rescind the IRS’s requirement for DeFi platforms to report user transaction data according to traditional broker standards.
This rule was hastily finalized by the Treasury Department at the end of 2024, mandating that starting in 2027, front-end platforms interacting directly with users of DeFi protocols must collect and report transaction data and issue 1099 tax forms to users, effectively integrating decentralized platforms into the traditional financial system, which drew strong backlash from the industry. Critics argued that the regulation was overly burdensome, potentially stifling innovation, infringing on user privacy, and severely hindering the development of the DeFi sector.
Regulatory Withdrawal Safeguards Privacy and Innovation
Amanda Tuminelli, CEO of the DeFi Education Fund, expressed her approval of the legislative outcome, noting that this bipartisan action underscores America’s commitment to fostering innovation and ensuring that Americans have the freedom to choose how they trade. She stated:
“President Trump’s signing is a critical turning point signal for the cryptocurrency industry: the U.S. has embraced a rational and forward-looking path for the development of digital assets.”
Bo Hines, Executive Director of the Trump Digital Asset Advisory Committee, stated on X that this represents an “important milestone for protecting privacy and innovation,” marking another significant step towards ushering in a golden age for digital assets.
Huge Moment! First crypto legislation ever signed into law. Repealing the IRS’s DeFi broker rule protects innovation and privacy—another big step toward ushering in a golden age for digital assets. Grateful to @POTUS, @tedcruz, and @RepMikeCarey for their leadership! https://t.co/lkdxbtJfnR — Bo Hines (@BoHines) April 10, 2025
Policy Reversal Strengthens Digital Asset Leadership
Senator Ted Cruz further pointed out that allowing this rule to take effect would “weaken the U.S.’s global leadership in the digital asset space.”
“I thank President Trump for signing my resolution into law; this is a victory for innovation, privacy, and economic freedom. We are protecting the developers who are building the future of cryptocurrency, clearly indicating that the U.S. will not cede digital leadership to China and safeguarding the ability of the American people to transact without government interference.”
This move aligns with the recent statement from the U.S. Department of Justice indicating that it would “no longer pursue DeFi software developers,” signaling a policy shift. From the previous Biden administration’s harsh actions against the Tornado Cash developers to today’s emphasis on protecting developers and the operational freedoms of platforms, U.S. regulatory rhetoric is gradually leaning toward “technology neutrality” and “development orientation.”
(Further Reading: U.S. Treasury Lifts Sanctions on Mixer Tornado Cash: Digital Assets Offer Opportunities for Value Creation, TORN Surges 74%!)
This also symbolizes the Trump administration’s intention to position cryptocurrency policy as a tool for national strategy and industrial competition, moving away from a previous focus on anti-money laundering and financial surveillance towards fostering domestic Web3 development.
