On April 10, 2025, President Donald Trump signed a resolution into law that repeals the Internal Revenue Service’s (IRS) DeFi Broker Rule. This action represents the first time a U.S. president has enacted cryptocurrency-focused legislation.
Understanding the IRS DeFi Broker Rule
Introduced in the final days of the Biden administration, the IRS DeFi Broker Rule aimed to broaden the definition of “broker” to include decentralized finance (DeFi) platforms. This expansion would have required these platforms to report user transaction data to the IRS, including gross proceeds from digital asset sales. Critics argued that such requirements were impractical for DeFi platforms, which operate without intermediaries and lack the means to collect the necessary user information.
Bipartisan Support Leads to Repeal
The resolution to overturn the IRS rule received bipartisan backing, passing both the House and Senate in March. Utilizing the Congressional Review Act, this legislative action not only nullifies the existing rule but also prevents the IRS from introducing similar regulations without explicit congressional approval.
Industry Applauds the Decision
Leaders within the cryptocurrency industry have praised the repeal as a victory for innovation and privacy. Kristin Smith, CEO of the Blockchain Association, stated that the rule “promised an end to the United States crypto industry” and that its repeal allows “innovators, builders, and developers to breathe again.” Similarly, Amanda Tuminelli, Executive Director of the DeFi Education Fund, emphasized that the repeal “underscores our nation’s commitment to fostering innovation and ensuring that Americans retain the freedom to choose how they transact.”
This development aligns with President Trump’s campaign promise to be a “crypto president.” In recent months, his administration has demonstrated a more supportive stance toward digital assets, including the creation of a federal bitcoin reserve and the establishment of a task force for digital asset regulation. The repeal of the IRS DeFi Broker Rule signifies a pivotal moment in U.S. cryptocurrency regulation, potentially paving the way for more balanced and innovation-friendly policies in the digital finance sector.
