Trump Signs Bill to Overturn Expanded IRS Cryptocurrency Broker Rule
April 10, 2025
U.S. President Donald Trump has officially signed into law a significant bill aimed at revoking a recent ruling by the Internal Revenue Service (IRS) that broadened the definition of a broker within the context of cryptocurrency transactions. This move, made public in a White House statement, marks a pivotal step in the ongoing debate over cryptocurrency regulation in the United States.
The IRS’s updated regulations had garnered attention in December 2024, during the waning days of the previous Biden administration. The revision expanded tax reporting requirements to include decentralized finance (DeFi) exchanges, platforms that facilitate direct transactions between users without intermediaries. This regulation emerged from a broader effort to ensure compliance and tax accountability in the rapidly evolving world of digital assets, and was influenced by provisions in the bipartisan Infrastructure Investment and Jobs Act of 2021. Congressional Action and Industry Response
Both chambers of Congress exercised their authority under the Congressional Review Act to pass the legislation, which permits a simple majority in both the House of Representatives and the Senate to nullify new federal regulations. The bill’s passage reflects the concerns voiced by stakeholders in the cryptocurrency industry, who argued that the IRS rules were impractical for DeFi platforms. They contended that these exchanges do not possess user data, thus rendering compliance with the tax reporting requirements virtually impossible.
The revised IRS guidelines mandated that digital asset brokers provide tax forms to both the IRS and their customers to aid in tax preparation, a requirement that many industry participants viewed as excessive and burdensome.
Trump’s Position on Cryptocurrency
President Trump’s recent actions align with his commitment to cultivate a favorable environment for cryptocurrency adoption. On the campaign trail, he pledged to become a "crypto president," aiming to attract investments from the burgeoning digital currency sector. Since taking office, he has taken tangible steps toward this goal, including the establishment of a cryptocurrency working group and an executive order designed to accumulate a federal stockpile of Bitcoin.
In light of the significant changes in cryptocurrency regulations, Trump’s administration’s swift action to rescind the IRS’s expanded broker definition could signal an ongoing commitment to revising the framework governing digital assets in the United States.
As the cryptocurrency landscape continues to evolve, the implications of this bill and the Trump administration’s regulatory stance will likely be scrutinized closely by both advocates and critics within the financial sector.
Conclusion
The repeal of the IRS’s expanded broker rules marks a critical juncture in the administration’s approach to cryptocurrency regulation. By addressing the needs and concerns of the industry, the Trump administration aims to foster an environment conducive to innovation and investment in digital assets, while also navigating the complexities of tax compliance in this growing economic sector.
For further updates and analysis on the implications of this legislation, continue to follow developments in cryptocurrency and financial regulatory policies.
Share this article:
