On April 10, 2025, President Donald #Trump signed a landmark bill repealing an IRS rule that would have required decentralized finance (DeFi) platforms to report user data to the IRS, similar to traditional financial brokers. This marks the first crypto-specific law enacted by a U.S. president, signaling a significant shift in the nation's approach to digital asset regulation.
The repealed rule, introduced during the Biden administration, aimed to classify #DeFi platforms as brokers, thereby mandating them to collect and report user transaction data. However, critics argued that DeFi platforms, which operate without intermediaries, lack the necessary access to user information, making compliance impractical. The crypto industry viewed the rule as a threat to innovation and user privacy.
The bill's passage received bipartisan support in Congress. Representative Mike Carey (R-Ohio) stated that the repeal allows the IRS to focus on its existing responsibilities without imposing unworkable requirements on emerging technologies. President Trump, who has positioned himself as a pro-crypto leader, previously established a cryptocurrency working group and ordered the creation of a federal bitcoin reserve.
This legislative move is seen by many in the industry as a pivotal moment, potentially setting a precedent for future crypto-friendly policies in the United States.
