Trump Officially Signs Repeal Bill, Overturning Biden-Era “IRS DeFi Broker Regulations”

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Trump Officially Signs Bill

Supporters: Prevents Stifling Innovation and Violating Privacy

Industry Organizations: “Finally a Breath of Fresh Air”

On April 10, U.S. President Donald Trump officially signed a congressional joint resolution overturning the “DeFi Trading Tax Reporting Rules” established by the IRS during the Biden administration. This measure, known as the “IRS DeFi Broker Rules,” was originally set to take effect in 2027.

The rule required decentralized finance (DeFi) platforms to report cryptocurrency transaction data to the IRS, including total income from each transaction and taxpayer information of the transaction participants. Now, with Trump’s signing of the resolution, the rule is officially nullified, becoming the first cryptocurrency industry bill to gain presidential approval.

Republican Congressman Mike Carey is one of the main advocates for the bill. He stated: “This DeFi Broker Rule would not only unnecessarily stifle American innovation but also infringe upon the privacy rights of ordinary citizens, potentially overwhelming the IRS during tax season due to the sheer volume of data.”

However, some Democratic lawmakers have expressed concerns about the bill. Congressman Lloyd Doggett indicated back in March that repealing the rule might create a loophole for the wealthy to evade taxes.

Kristin Smith, Executive Director of the blockchain advocacy organization Blockchain Association, issued a statement on April 10, expressing that American startups, developers, and builders can finally breathe a sigh of relief. She emphasized: “If this rule were enforced, it would be akin to sentencing the U.S. cryptocurrency industry to death—it is a sledgehammer that destroys innovation.”

The Blockchain Association had previously filed a lawsuit against the IRS, U.S. Department of the Treasury, and Treasury Secretary Janet Yellen in December 2023, accusing the rule of illegal and unconstitutional overreach.