This is a major victory for the crypto industry as US President Donald Trump has finally repealed the controversial IRS DeFi broker rule. The bill was passed by Congress and signed on April 10 making it the first crypto-related legislation ever passed.
The rule was to come into force in 2027 and was formulated during the time of the Biden administration. It would have made DeFi platforms to report to the IRS all transactions involving cryptocurrencies and other information concerning the users as well as gross receipts from sales.
Critics warned the rule would crush innovation, overload the IRS with data, and violate user privacy. “The DeFi Broker Rule needlessly hindered American innovation,” said Representative Mike Carey, a key supporter of the resolution.
Crypto leaders cheered Trump’s decision. Kristin Smith, CEO of the Blockchain Association, said the industry can finally “breathe again,” calling the rule “a sledgehammer to the engine of American innovation.” Her group had even sued the IRS, Treasury, and former Treasury Secretary Janet Yellen, arguing the rule was an illegal overreach.
Meanwhile, Trump’s administration continues its pro-crypto shift. The SEC, under pressure, has started easing off enforcement actions and is now engaging in talks with the industry on future regulations.
Supporters of the repealed rule, like Democratic Rep. Lloyd Doggett, argue it would’ve closed tax loopholes for the wealthy. But for now, DeFi platforms can operate without the looming IRS threat — and the US crypto space just got a major boost.
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