President Trump Signs Resolution Repealing IRS Crypto Rule Targeting DeFi
The successful deregulation of the tax regulations serves as the first significant step in supporting cryptocurrencies through Congress.
Jesse Hamilton | Edited by Nikhilesh De Updated April 11, 2025, 6:49 PM Published April 10, 2025, 11:17 PM
What you should know:
- President Donald Trump has approved a congressional resolution that would repeal an Internal Revenue Service rule put in place in the final days of the Biden administration that could have significantly impacted DeFi projects.
- Congress repealed the tax law with a unanimous bipartisan vote.
- This is the first cryptocurrency-friendly initiative to pass through Congress.
With President Donald Trump's signature, the decentralized finance (DeFi) sector in the crypto space is now exempt from the Internal Revenue Service's requirements that such platforms be treated as brokers and monitor and report user activity.
The narrow IRS rule, enacted in the final days of former President Joe Biden’s administration, has been officially repealed, said Representative Mike Carey, an Ohio Republican who supported the effort. The agency also has no authority to do so under the Congressional Review Act, a power lawmakers use to eliminate tax regulations.
“The DeFi Broker Rule unnecessarily stifles innovation in the U.S., violates the privacy of everyday Americans, and risks overwhelming the IRS with new filings it doesn’t have the infrastructure to handle come tax season,” Carey said in a statement after signing the resolution on Thursday.
While the issue was relatively narrow, its completion marked the first time a pro-cryptocurrency initiative had passed the US Congress.
Both the Senate and House of Representatives agreed to overturn the IRS action with strong bipartisan votes, further highlighting the crypto sector’s influence in this Congress. This could signal favorable prospects for the industry in other broader issues, including legislation to regulate stablecoin issuers and establish market rules for crypto transactions.
“With President Trump’s signature, the rule is officially rejected and repealed, and the United States has passed its first-ever cryptocurrency law — a major milestone for DeFi,” the DeFi Education Foundation said in a post published Thursday on its website.
With the DeFi tax resolution in mind, stablecoin legislation is the next priority in Congress. Bills have passed committees in the House and Senate and are awaiting votes in each chamber. Approval would begin the process of merging the two initiatives into a single compromise version.
The president has called for the bill to be introduced by August, and lawmakers behind the legislation said that deadline was still possible.
