Trump Repeals Controversial IRS Crypto Rule Finalized Under Biden Administration
Washington, D.C. — April 10, 2025 — Former President Donald Trump has officially signed a resolution that repeals a contentious tax rule imposed by the Internal Revenue Service (IRS) during the final days of the Biden administration. The resolution, spearheaded by Republican lawmakers, reflects a growing push within Congress to reduce regulatory burdens on the cryptocurrency sector.
Controversial Rule Explained
The IRS crypto rule, finalized in December 2024, aimed to impose stringent reporting requirements on "custodial brokers." These brokers would have been mandated to collect and report user data to the IRS, effectively treating decentralized finance (DeFi) platforms like traditional securities brokers. As such, the rule would have required these entities to issue Form 1099 tax returns to their customers, outlining non-employment income from various activities, including trading gains, rentals, and royalties.
Lawmaker Rep. Mike Carey of Ohio, who played a key role in the resolution’s introduction, attended the signing ceremony. He characterized the repeal as a significant victory for the crypto community, stating, “By repealing this misguided rule, President Trump and Congress have given the IRS an opportunity to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles.”
Bipartisan Support for the Repeal
This repeal achieved notable bipartisan support, evidenced by a vote in the Senate earlier this year, which saw backing from both parties, including Senate Minority Leader Chuck Schumer. The measure was then passed by the House before being sent back to the Senate due to its ties to a broader budget provision.
Amanda Tuminelli, Executive Director of the DeFi Education Fund, praised the repeal, emphasizing its importance for protecting software developers and fostering innovation in decentralized technologies. "President Trump’s signature is a critical signal change for the crypto industry: the United States has embraced a sensible, forward-thinking approach to digital assets," she remarked.
Implications for the Crypto Industry
The repeal signifies a shift in the regulatory landscape for cryptocurrencies in the U.S. By eliminating the IRS’s broker rule, industry experts believe it will alleviate potential privacy concerns and prevent a scenario where innovation is stifled by onerous reporting requirements. Bo Hines, Executive Director of the President’s Working Group on Digital Assets, stated, “This is a major step forward for financial technology development and securing the United States’ position as the crypto capital of the world.”
The IRS rule’s finalization had raised concerns that compliance would drive many operators offshore, undermining the U.S.’s competitiveness in the crypto space. With its repeal, advocates hope to see a resurgence in domestic innovation and investment.
Conclusion
With Trump’s signing of the resolution, the controversial IRS crypto rule faced its end. Lawmakers and industry advocates alike view this move as a pivotal moment for the future of digital assets in America, heralding new opportunities for growth and innovation while emphasizing the need for a balanced regulatory approach. As the industry evolves, all eyes will remain on Congress to see how further regulations will shape the landscape of cryptocurrency in the United States.
For ongoing coverage of policies affecting the cryptocurrency sector, stay tuned to The Block and its insightful reporting on regulatory changes.
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