In a landmark decision shaking up the U.S. crypto policy landscape, President Donald Trump has officially repealed a controversial IRS rule that sought to impose broker-style tax reporting requirements on DeFi platforms. The move is being celebrated across the decentralized finance space as a monumental win for innovation, privacy, and crypto-native ecosystems.
💥 What Was the IRS Rule All About?
The repealed IRS rule would have forced DeFi protocols — even those with no central authority — to act like brokers and collect/report user data to the U.S. government. Think wallet addresses, transaction details, and potentially even personal identifiers.
📉 Problem? Most DeFi platforms don’t have access to that data — and trying to comply could’ve driven projects offshore or shut them down completely.
🏛️ Repealed Through the Congressional Review Act
The rollback was executed via the Congressional Review Act, with the Senate voting 70-27 and the House following up with a 292-132 decision — a rare show of bipartisan support.
Even 76 Democrats voted in favor, recognizing the regulation's potential to stifle blockchain innovation in the U.S.
🗣️ "The IRS rule would have stifled American innovation and raised major privacy concerns," said David Sacks, crypto policy chief for the Trump administration.
🚀 Why This Is Huge for DeFi
DeFi builders and users alike have reason to celebrate. The repeal:
🧾 Eliminates burdensome tax compliance requirements for protocols with no central admin
🛡️ Protects user privacy in decentralized ecosystems
🌍 Sends a strong signal that U.S. lawmakers are waking up to how DeFi actually works
Crypto advocacy groups like the Blockchain Association are calling this a turning point for responsible, innovation-friendly regulation.
⚠️ Not Everyone's Cheering
Some lawmakers voiced concern. Rep. Lloyd Doggett (D-TX) claimed the repeal could:
Enable tax evasion
Increase the deficit by $4B in lost revenue
But the crypto community argues that smarter, tech-literate regulation is the real solution — not blanket policies that don’t match how DeFi operates.
📈 What’s Next?
While this repeal lifts a heavy regulatory cloud, the crypto industry still faces uncertainty. Expect future debates around:
🧠 Smarter DeFi compliance tools
🏛️ New regulatory frameworks tailored to decentralized systems
🌐 Continued advocacy from Web3 leaders and builders
One thing’s for sure — the DeFi movement just scored a major policy victory in the U.S.
📢 Follow us for more breaking crypto policy news — and drop your thoughts below. Was the repeal the right move?