Former President Donald Trump struck down a contentious IRS rule targeting DeFi platforms, marking the first-ever crypto legislation signed by a U.S. president. The April 10, 2025 repeal effectively killed a Biden-era regulation that would have classified decentralized finance platforms as brokers, forcing them to report crypto sales and user data to the IRS.
Trump’s historic crypto move kills Biden-era IRS rule, freeing DeFi platforms from broker classification and mandatory reporting requirements.
The crypto industry couldn’t be happier. No surprise there – nobody likes the tax man snooping around their digital wallet. The now-defunct rule, which was set to kick in by 2027, had faced fierce criticism for potentially strangling DeFi innovation and trampling user privacy rights. David Sacks, Trump’s crypto advisor, led the charge against the rule by highlighting its potential to stifle innovation.
The repeal sailed through Congress with surprising bipartisan support. First, the House Ways and Means Committee gave it the green light in February. Then the full House approved it in March, followed by the Senate later that month. Talk about a rare moment of political unity – who knew crypto could bring Washington together? The decision comes as Senate Democrats urge the DOJ to reinstate crypto enforcement to combat criminal activity. Smart contracts on various DeFi platforms have already proven capable of automating financial processes without intermediary oversight.
Using the Congressional Review Act, Trump’s signature didn’t just kill the rule – it made sure it stayed dead. The IRS can’t come back with a similar measure. That’s got to sting for the tax agency, which argued the regulation would prevent crypto tax dodgers from hiding their gains.
For the DeFi sector, this is huge. The repeal removes a massive administrative headache and lets platforms focus on innovation rather than compliance paperwork. It also saves the IRS from drowning in an ocean of transaction data they probably couldn’t handle anyway.
Critics of the original rule said it made no sense to force decentralized platforms into a centralized regulatory box. They warned about crushing compliance costs and operational nightmares. Looks like Congress finally listened.
Trump’s move signals a decidedly pro-crypto stance from his administration and sets the stage for more industry-friendly policies. With this precedent set, the U.S. might actually have a shot at staying competitive in the global blockchain race. Who would’ve thought – sometimes killing a rule is exactly what the doctor ordered.
