President Trump Signs Historic Bill Repealing IRS DeFi Broker Rule

April 11, 2025 – In a landmark move for the cryptocurrency industry, President Donald Trump signed a bill into law that repeals the controversial IRS DeFi Broker Rule, marking the first-ever crypto-specific bill passed in the United States. The bill, which gained bipartisan support, is seen as a victory for innovation, privacy, and reducing regulatory burdens in the digital asset space.

The Repeal of the IRS DeFi Broker Rule

The IRS DeFi Broker Rule, enacted under the Biden administration, required decentralized finance (DeFi) platforms to report transaction data to the Internal Revenue Service (IRS). It also proposed creating a new classification for brokers, encompassing certain participants or entities within the DeFi sector. The rule was criticized for being too broad, imposing heavy compliance burdens on the industry, and stifling innovation in a rapidly developing market.

The bill to repeal the rule passed with strong support in both houses of Congress, reflecting broad recognition of the need to support growth and protect privacy within the DeFi space. The Senate approved the bill with a 70-28 vote, while the House of Representatives passed it with a 292-132 margin.

Bipartisan Support for Privacy and Innovation

The repeal of the IRS DeFi Broker Rule was driven by bipartisan efforts, notably from Senator Ted Cruz and Representative Mike Carey, who introduced the Congressional Review Act of Disapproval (CRA), H.J. Res. 25. Representative Carey highlighted the importance of the bill, calling it the first-ever cryptocurrency law passed in the United States and noting that it marked the first CRA related to taxes to be enacted.

In his remarks, Representative Carey argued that the rule “stifled growth” and placed unnecessary burdens on the DeFi sector, which is rapidly evolving and becoming an essential part of the global financial ecosystem. By repealing the rule, lawmakers aim to foster an environment where innovation can thrive without being hindered by outdated regulatory frameworks.

SEC Signals Shift in Regulatory Approach

In a move that further signals a shift in the regulatory landscape, the Securities and Exchange Commission (SEC) also provided new guidance on crypto assets, offering clarity on how digital assets will be treated moving forward. This guidance is expected to help DeFi platforms and crypto businesses navigate the evolving regulatory environment.

Additionally, the SEC dismissed charges against Nova Labs, a prominent company in the crypto space, signaling a more lenient and supportive regulatory stance towards the industry.

Impact on the Crypto Industry

The signing of this historic bill and the SEC’s new stance represent a significant shift in the US government’s approach to cryptocurrency regulation. For the crypto industry, this development is seen as a win for privacy, innovation, and freedom from excessive regulatory burdens. By repealing the IRS DeFi Broker Rule, Congress and the President have taken a crucial step toward creating a more supportive environment for the growing DeFi ecosystem.

As the digital asset industry continues to evolve, this bill and the regulatory changes by the SEC are expected to shape the future of crypto innovation in the United States, potentially paving the way for more pro-crypto legislation and greater legal clarity for investors and developers alike.

This legislative breakthrough is seen as a pivotal moment in the ongoing battle to ensure that cryptocurrency and blockchain technologies can continue to develop without undue interference, setting the stage for more dynamic regulatory frameworks that encourage growth and privacy within the digital economy.