Historic moment for crypto regulation
President Donald Trump has signed the first crypto-related bill in U.S. history into law, repealing an IRS rule that would have imposed traditional broker-level tax reporting requirements on decentralized finance (DeFi) platforms. The move officially ends what many in the crypto space had seen as one of the most existential regulatory threats to DeFi in the U.S.
The so-called "DeFi Broker Rule" was introduced in 2023 under President Biden and was designed to treat DeFi protocols as brokers, requiring them to collect user information and submit tax forms. However, many experts argued that DeFi platforms, which operate through smart contracts and not intermediaries, are technically incapable of complying.
Industry and political consensus aligned
The repeal of the rule received overwhelming bipartisan support in both chambers of Congress last month. Industry leaders and privacy advocates had warned that the rule would have destroyed DeFi innovation in the U.S. by creating compliance obligations that decentralized protocols simply could not fulfill.
Crypto lobbying groups, including the DeFi Education Fund, actively campaigned for the repeal. Amanda Tuminelli, the group’s Executive Director, called the signing “a pivotal moment for the U.S. digital asset sector,” adding that it marked a major step toward regulatory clarity.
Trump signals new direction for crypto oversight
The Trump administration had backed the bill from the start, with White House crypto and AI policy czar David Sacks calling the IRS rule a "Biden-era midnight regulation" that ignored how DeFi actually works.
Trump’s signature indicates a shift in the federal approach to crypto under his administration. It also underscores his continued alignment with crypto-friendly voices in the Republican Party, many of whom view blockchain technology as a tool for individual empowerment and economic freedom.
With this move, the U.S. has sent a clear message that it is willing to rethink outdated financial rules in order to foster innovation in blockchain-based finance.
