Trump cancels the decentralized finance intermediary rules issued by the IRS, thereby reversing the cryptocurrency policy pursued by Biden
Trump signed a law canceling the decentralized finance intermediary rules issued by the IRS, which were enacted during Biden's administration.
Decentralized finance platforms were required to report user data, just like traditional intermediaries.
President Donald Trump signed a law that cancels rules issued by the IRS during Biden's term, which expanded the scope of tax reporting requirements to include decentralized finance (DeFi) platforms. The IRS rule, finalized in late 2024, aims to treat DeFi operators as intermediaries and compel them to report user transaction data. Although it was set to take effect in 2026, critics warned that it would harm cryptocurrency innovation and burden small developers.
Both houses of Congress approved the resolution earlier this year under the Congressional Review Act. Lawmakers argued that the IRS rule imposed unrealistic technical requirements on DeFi platforms. Unlike centralized trading platforms like Coinbase or Kraken, these platforms do not retain user identities or custodial assets.