In April 2025, U.S. cryptocurrency regulation reached a historic turning point—President Trump officially signed a bill that repealed the controversial tax reporting rules imposed by the IRS on decentralized finance (DeFi) platforms. This move not only marks the official enactment of the first bill specifically targeting the cryptocurrency sector in the U.S., but also represents a significant shift in the U.S. stance on digital asset regulation.
Today, President Trump signed a joint resolution of Congress that officially repealed the "DeFi broker rule" established by the IRS during the Biden administration. This bill was proposed by Republican Senator Ted Cruz under the Congressional Review Act (CRA) and gained overwhelming bipartisan support in both chambers of Congress: the Senate passed it with a vote of 70 to 28, while the House passed it with a supermajority of 292 to 132.
The signing of this bill holds multiple historical significances. Firstly, it is the first bill in U.S. history to receive presidential signature and enactment specifically targeting the cryptocurrency sector. As Republican Congressman Mike Carey excitedly stated on social media: "Historic moment! The president just signed my bill to repeal the IRS DeFi broker rule. This is the first cryptocurrency bill ever signed by a U.S. president."
Secondly, the passage of this bill showcased rare bipartisan cooperation. Although the Democratic Party supported this rule during the Biden administration, many Democratic lawmakers also joined the support when the Trump administration pushed for its repeal, directly rebutting the policies of their former party leader. This shift in political stance reflects how cryptocurrency issues are transcending traditional partisan divides and becoming significant topics in U.S. policy discussions.
The repealed "DeFi broker rule" was a tax regulation quickly passed by the Biden administration before leaving office at the end of 2024, originally set to take effect in 2027. This rule attempted to expand existing tax reporting obligations, requiring all DeFi protocol platforms to report user transaction data like traditional brokers. Specific content includes:
Require certain DeFi operators to collect and report user personal information and transaction data
Mandate these platforms to send users 1099 tax forms (typically used to report non-wage income such as rent, royalties, etc.)
The applicable subjects are "platforms or websites that provide an interface" for users to access DeFi protocols, but not directly targeting the DeFi protocols themselves.
Once this rule was announced, it immediately sparked strong opposition from the cryptocurrency industry. Critics argued that the rule was overly cumbersome, not only infringing on user privacy but also potentially stifling innovation in the DeFi space, forcing industry participants to leave the U.S. Therefore, the repeal of this rule is now seen as a significant victory.
Kristin Smith, CEO of the Blockchain Association, stated in a statement: "Innovators, builders, and developers in the industry can finally breathe a sigh of relief. This IRS rule was like a sledgehammer, nearly striking down the engine of American innovation." In December 2024, the association, together with the DeFi Education Foundation, filed a lawsuit against the IRS and the Treasury Department, accusing the rule of being illegal and constituting "unconstitutional overreach."
DeFi Education Foundation CEO Amanda Tuminelli stated: "President Trump's signing is a critical turning point signal for the crypto industry: the U.S. has embraced a rational and forward-looking development path for digital assets." She pointed out that this bipartisan action underscores the U.S. commitment to fostering innovation and ensuring Americans have the freedom to choose their transaction methods.
Trump's Digital Asset Advisory Committee Executive Director Bo Hines stated on social media that this is an important milestone for "protecting privacy and innovation" and is "another big step towards the golden age of digital assets."
From the government's perspective, this move also signifies a clear shift in the Trump administration's cryptocurrency policy. David Sacks, the White House AI and Cryptocurrency Affairs Chief, previously criticized this IRS rule as the Biden administration's "midnight regulation," which would "stifle American innovation and raise privacy concerns over the sharing of taxpayer personal information, while imposing unprecedented compliance burdens on U.S. DeFi companies."
Senator Ted Cruz further pointed out that allowing this rule to take effect would "weaken America's global leadership position in the digital asset space." He stated: "We are protecting the developers who are building the future of cryptocurrency and making it clear that the U.S. will not cede digital leadership to China, while safeguarding the ability of the American people to trade without government interference."
Additionally, the signing of this bill not only signifies the repeal of a single rule but also represents an overall shift in the U.S. cryptocurrency regulatory mentality. From the Biden administration's severe handling of Tornado Cash developers to now emphasizing the protection of developer and platform operational freedoms, the tone of U.S. regulation is gradually leaning towards "technological neutrality" and "development orientation."
This shift also reflects the Trump administration's view of cryptocurrency policy as a tool for national strategy and industrial competition. The government is attempting to move away from a previous focus on anti-money laundering and financial oversight frameworks, shifting towards supporting the development of a domestic Web3 ecosystem. As some analyses point out, this move aims to ensure the U.S. maintains a global leadership position in the digital asset space and to avoid ceding dominance in this strategic industry to competitors like China.
It is noteworthy that this policy shift is not an isolated event. Recently, the U.S. Department of Justice has stated that it will "no longer hold DeFi software developers accountable," and the SEC has begun to withdraw multiple enforcement actions against cryptocurrency firms initiated during the Biden administration, while also engaging in multiple regulatory consultations with the industry. These changes collectively signal an improvement in the U.S. cryptocurrency regulatory environment.
In summary, with the signing of this historic bill, the U.S. cryptocurrency industry welcomes a clearer regulatory outlook. This move will provide a more favorable policy environment for ongoing innovation in the DeFi space while signaling to the global market that the U.S. maintains an open attitude toward digital assets.
However, regulatory challenges still exist. How to balance protecting innovation with ensuring market integrity and taxpayer compliance remains a long-term issue policymakers need to face. Some experts predict that the U.S. government may introduce a more refined cryptocurrency regulatory framework in the future, rather than simply applying traditional financial rules.
Regardless, the signing of this bill in April 2025 has been recorded in the chronicles of cryptocurrency development. It not only represents a significant turning point in U.S. policy but may also become a landmark event in the evolution of global digital asset regulation. For participants in the cryptocurrency industry, this is a moment worth celebrating, while also reminding them to actively collaborate with regulatory agencies to jointly build a sustainable digital asset ecosystem.
