On April 10, 2025, President Donald Trump signed a bill into law that repeals the controversial IRS DeFi Broker Rule, a key regulation established under the Biden administration. This move marks a significant legislative victory for the cryptocurrency industry, which had opposed the rule that would have expanded the definition of “broker” to include decentralized finance (DeFi) platforms and other non-custodial digital asset services.
The IRS DeFi Broker Rule, finalized in December 2024, would have required DeFi platforms, wallet providers, and other digital asset services to collect user information and report crypto transaction data using IRS Form 1099. This would have placed significant compliance burdens on the crypto industry and, according to its critics, created a cumbersome regulatory framework that would have been difficult for the IRS to manage effectively.
Rep. Mike Carey (R-Ohio), who introduced the bill alongside Sen. Ted Cruz (R-Texas), hailed the signing as a major win for the crypto industry and a much-needed step back from overreaching regulation. Carey argued that the rule “needlessly hindered American innovation” and placed undue strain on the IRS. He added that repealing the rule allows the IRS to focus on its existing duties rather than creating new bureaucratic hurdles.
“This is the first cryptocurrency bill ever signed into law and the first tax-related Congressional Review Act of Disapproval signed into law,” Rep. Carey stated in his press release. The repeal prevents the IRS from issuing a similar rule without explicit Congressional approval under the Congressional Review Act (CRA).
The resolution, known as H.J.Res.25, passed both the Senate and the House earlier in 2025 and was signed by the president following a final Senate vote on March 26. The White House had already expressed support for the resolution, calling the IRS rule a “midnight regulation” introduced during the final days of the Biden administration.
This signing comes amid broader regulatory changes in Washington, including recent shifts at the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ). With new leadership at the SEC, industry insiders anticipate a more supportive stance toward crypto innovation, marking a shift from the previous administration’s enforcement-heavy approach.
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