Donald Trump Signs Resolution to End IRS DeFi Broker Rule

Highlights:

• Trump’s signature cancels the IRS rule, protecting DeFi platforms from new reporting requirements.
• DeFi platforms criticized the rule for being technically impossible and burdensome on innovation.
• The repeal reduces the compliance burden, stopping the IRS from reimposing similar rules on crypto.

On April 10, President Donald Trump signed a resolution that canceled an Internal Revenue Service (IRS) rule. This rule would have required decentralized finance (DeFi) platforms to report users’ total crypto sales and collect user data for the tax agency. Introduced in Joe Biden’s final days, it expanded the definition of “broker” to include non-custodial services like DeFi platforms and crypto trading websites. Its goal was to ensure that crypto users paid taxes on asset sales. The Treasury estimated that crypto users lost billions in taxes each year.

🚨 HISTORY MADE 🚨

Just now, @POTUS signed my bill to repeal to the IRS DeFi Crypto Broker Rule.

This is the first cryptocurrency bill EVER signed into law by a president.@HouseGOP is working to keep America as the crypto capital of the world!

— Congressman Mike Carey (@RepMikeCarey) April 10, 2025

Industry Pushback Leads to First-Ever U.S. Crypto Law Repeal

The rule faced strong criticism from the digital asset industry. Unlike centralized exchanges like Coinbase or Kraken, DeFi platforms do not act as intermediaries. They also do not have access to user identities. Executives and developers argued that the rule was technically impossible to follow and legally risky. They warned that it would place unworkable burdens on protocols designed to be permissionless.

The bill is not only the first crypto-related law signed by Trump but also the first signed by any U.S. president. Representative Mike Carey, who supported the bill, mentioned this in a statement. This repeal reduces the compliance burden. The rule hadn’t started yet, but it was supposed to begin in 2027.

Carey said:

“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season.”

The measure passed the Senate on March 4 and then the House the following week. However, due to its connection to a budget matter, the Senate had to vote again before sending it to the President. The Senate voted to overturn the controversial crypto tax rule on March 26. The Congressional Review Act now prevents the IRS from issuing a similar rule unless Congress approves it again. This blocks the agency from reinstating similar reporting requirements for digital asset brokers.

🚨 HISTORY MADE 🚨

Just now, @POTUS signed my bill to repeal to the IRS DeFi Crypto Broker Rule.

This is the first cryptocurrency bill EVER signed into law by a president.@HouseGOP is working to keep America as the crypto capital of the world!

— Congressman Mike Carey (@RepMikeCarey) April 10, 2025

End of IRS Broker Rule Signals a New Era for Crypto Industry

Trump’s signature officially ends the IRS’s broker rulemaking, said Amanda Tuminelli, Executive Director of the DeFi Education Fund. Tuminelli also praised Congress members who supported the resolution. She highlighted the importance of protecting software developers and promoting decentralized technologies. She said President Trump’s signature shows the U.S. has chosen a smart, forward-thinking approach to digital assets.

Kristin Smith, CEO of the Blockchain Association, said on April 10 that the industry’s innovators, builders, and developers can now “breathe again” after the resolution passed. “This rule promised an end to the United States crypto industry; it was a sledgehammer to the engine of American innovation,” she added.

1/ Today, Pres. @realDonaldTrump signed the CRA resolution to overturn the IRS’s DeFi-killing Broker Rule — a last-minute regulatory overreach that threatened privacy, innovation, and the future of crypto in the United States.

American crypto innovators can breathe again. pic.twitter.com/8t4vwOD9cc

— Blockchain Association (@BlockchainAssn) April 10, 2025