Trump Signs Bill to Revoke IRS’s Expanded Crypto Broker Rule
April 10, 2025
U.S. President Donald Trump has officially signed into law a bill that reverses the Internal Revenue Service’s (IRS) expanded definition of a broker in relation to cryptocurrency transactions. This decision, announced through a White House statement, comes after significant backlash from the cryptocurrency community regarding the IRS’s updated rules.
Background on the IRS Rule Changes
In December 2024, during the final weeks of the Biden administration, the IRS updated its tax reporting requirements for cryptocurrency transactions. The new rules expanded the broker definition to include decentralized cryptocurrency exchanges, which are platforms that facilitate direct transactions between users without traditional intermediaries. The change was part of an effort to enhance tax compliance among cryptocurrency users, aimed at addressing potential tax evasion in the rapidly growing digital asset market.
The revised rules required digital asset brokers to provide tax reporting forms to both the IRS and the users, as was set forth in the bipartisan 2021 Infrastructure Investment and Jobs Act. Advocates for cryptocurrency argued that the IRS’s framework posed significant compliance challenges, particularly for decentralized finance (DeFi) platforms, which do not maintain records of their users’ identities and transactions, making adherence to such regulations practically unfeasible.
Legislative Action
The push to nullify the IRS’s expanded definition of a broker gained momentum in March 2025, when both the House of Representatives and the Senate utilized the Congressional Review Act. This legislative mechanism allows Congress to rescind newly established federal regulations with a simple majority vote. The quick bipartisan support for the repeal highlights the strong concern among lawmakers regarding the viability of the IRS regulations for the crypto industry.
Industry Reaction and Trump’s Commitment to Cryptocurrency
The cryptocurrency sector largely welcomed the bill’s passage, viewing the IRS’s revised rule as potentially detrimental to the growth of DeFi platforms. Industry representatives had been vocal in their opposition, urging Republican lawmakers to take action against the rule, citing its impracticality and potential harm to innovation within the sector.
During his presidential campaign, Trump pledged to become the "crypto president," prioritizing the promotion of digital asset adoption. His administration has already taken steps to engage with the cryptocurrency community, including establishing a cryptocurrency working group aimed at proposing new regulatory frameworks and facilitating digital currency integration.
Conclusion
The signing of this bill to nullify the IRS’s expanded crypto broker rule represents a significant win for the cryptocurrency industry, which faces ongoing regulatory challenges. As the digital asset landscape continues to evolve, it remains to be seen how future regulations may further impact this dynamic sector and its stakeholders.
Reporting by Hannah Lang in New York; Additional reporting by Ismail Shakil; Editing by Lincoln Feast.
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