President Trump Signs Resolution Repealing IRS Crypto Rule Impacting DeFi
By Jesse Hamilton | Edited by Nikhilesh De
Updated April 11, 2025, 6:49 p.m. | Published April 10, 2025, 11:17 p.m.
In a significant move for the cryptocurrency landscape, President Donald Trump has signed a congressional resolution that effectively nullifies a rule established by the Internal Revenue Service (IRS) during the closing days of the Biden administration. This rule, which specifically targeted decentralized finance (DeFi) projects, mandated that these platforms be treated as brokers and required to track and report user activity.
This resolution marks a pivotal moment for the crypto sector, showcasing the industry’s ability to advocate for favorable legislation. The repeal received robust bipartisan support, reflecting an increasing acknowledgment of the importance of the DeFi space within the broader financial ecosystem.
Congressional Action
The resolution’s passage through Congress was facilitated by a strong coalition of lawmakers from both the Senate and the House of Representatives, emphasizing a unified approach to crypto regulation. Representative Mike Carey, a Republican from Ohio who was instrumental in this effort, stated, “The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season.”
The resolution utilizes authority from the Congressional Review Act, which allows Congress to disapprove federal regulations. As a result of this action, the IRS is barred from reinstating similar tracking and reporting requirements in the future.
Implications for the Crypto Industry
With President Trump’s endorsement of the resolution, the DeFi sector is now liberated from the burdensome demands that the previous IRS rule would have imposed. This is heralded as the first successful pro-crypto legislation to reach the President’s desk, signifying a watershed moment for the industry. The DeFi Education Fund, in a statement following the signing, celebrated it as a landmark achievement, stating, “With the DeFi tax resolution in the rearview, the next crypto priority in Congress has been stablecoin legislation.”
The collapse of the IRS rule could imply greater freedom for innovation within the DeFi space and a more favorable environment for crypto entrepreneurs and investors. Analysts suggest this could set a precedent for future legislation concerning cryptocurrencies, which remains a hot topic among policymakers.
Looking Ahead
With the DeFi tax resolution resolved, attention now shifts to stablecoin legislation, which has gained momentum in Congress. Bills addressing stablecoin regulations have already passed through relevant committees in both houses and are poised for floor votes. Congressional leaders have indicated a desire to advance this legislation swiftly, with hopes that it could reach the President’s desk by August.
This progressive legislative climate suggests a potentially transformative period for the cryptocurrency industry, as it seeks to navigate and shape the regulatory framework in which it operates.
Conclusion
President Trump’s recent action represents a notable shift in the legislative landscape surrounding cryptocurrencies in the United States. The successful repeal of the IRS rule affecting DeFi projects not only illustrates growing political support for the crypto sector but also sets the stage for further regulatory advancements that could benefit the entire industry. As lawmakers continue to discuss and propose new regulations, the outcome of these initiatives will likely have long-lasting effects on the future of digital finance in America.
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