Trump signs resolution to repeal IRS DeFi rule, marking first crypto bill signed into law

On April 10, 2025, President Donald Trump has signed a joint congressional resolution repealing a controversial IRS rule targeting decentralized finance (DeFi) platforms, effectively ending a regulation finalized during the Biden administration.

The rule, originally set to take effect in 2027, would have classified DeFi platforms as brokers and required them to report user transactions, including gross proceeds and personal taxpayer data to the IRS, similar to traditional securities brokers.

Critics said the rule threatened innovation, overreached federal authority, and imposed unrealistic compliance burdens on decentralized systems.

Representative Mike Carey (R-OH), who introduced the measure alongside Senator Ted Cruz (R-TX), called the signing a milestone.

“This marks the first time a crypto bill has ever been signed into law,” Carey said.

“The DeFi Broker Rule needlessly hindered American innovation and overwhelmed the IRS with filings it isn’t equipped to handle.”

The repeal moved swiftly through Congress, clearing the House in March and the Senate twice due to constitutional requirements for budget-related legislation. Trump’s signature on April 10 was expected after the White House publicly opposed the rule, calling it a “midnight regulation” from the final days of the previous administration.

The move was hailed by crypto advocates, including Blockchain Association CEO Kristin Smith, who said the industry “can breathe again.” She called the now-defunct rule a “sledgehammer to the engine of American innovation.”

The Blockchain Association previously filed a lawsuit against the IRS and the Treasury Department in December, arguing the rule was unconstitutional and unlawfully imposed.

Amanda Tuminelli, executive director of the DeFi Education Fund, said Trump’s signature signaled a new chapter. “The United States has embraced a sensible, forward-thinking approach to digital assets,” she said.

While supporters of the rule, such as Rep. Lloyd Doggett (D-TX), warned its repeal could open tax loopholes for the wealthy, some Democrats, including Senate Minority Leader Chuck Schumer, joined Republicans in backing the resolution.

The Trump administration has generally taken a pro-crypto stance, easing enforcement actions initiated under former SEC Chair Gary Gensler and signaling openness to industry input on future regulation.

With the IRS DeFi broker rule officially repealed, the crypto industry sees the move as a turning point in federal policy, one that may define how the U.S. approaches decentralized technologies moving forward.