On April 10, 2025, Donald Trump officially signed into law a bill that cancels a contentious IRS regulation that sought to expand the definition of a “broker” to include decentralized finance (DeFi) platforms.
This legislative move effectively repeals a rule introduced in late 2024 by the Biden administration, which had aimed to enforce traditional tax reporting standards on a rapidly growing and often anonymous sector of the crypto economy.
The original IRS rule required DeFi platforms to collect and report detailed user transaction data—similar to centralized crypto exchanges like Coinbase. However, DeFi operates in a fundamentally different way. These platforms often run autonomously through smart contracts and lack the infrastructure to collect personal user information. Critics of the rule argued that it was technically unfeasible and legally overreaching, threatening to drive innovation offshore and burden developers with compliance standards they couldn’t meet.
In response, Congress acted swiftly under the Congressional Review Act. The resolution to nullify the IRS rule received bipartisan support. Notably, several Democrats joined Republicans in voting to overturn the rule, signaling rare political unity in the crypto regulation debate. Senator Ted Cruz and Representative Mike Carey led the charge, highlighting the importance of protecting emerging technologies from overregulation. They argued that DeFi should not be penalized for operating differently from traditional financial systems.
Trump’s signature on the bill reflects his administration’s broader approach to cryptocurrency policy. Since returning to office, Trump has prioritized crypto innovation, establishing a task force on digital assets and even announcing plans to create a federal Bitcoin reserve. His administration has also promised to roll back previous regulations that hindered crypto adoption, aiming to make the U.S. a global leader in the sector.
The repeal of the expanded broker rule is being celebrated by the crypto industry as a landmark victory. Advocates believe it sends a clear message: the U.S. is serious about supporting blockchain technology and the decentralized financial future. While regulatory clarity is still a work in progress, this decision marks a shift toward a more favorable environment for innovation, striking a balance between oversight and growth.
