Trump Signs Law Repealing IRS DeFi Broker Rule in Landmark Win for Crypto

In a historic move for the crypto industry, President Donald Trump has signed into law a resolution repealing the IRS DeFi Broker Rule, originally established under the Biden administration. The rule, finalized in late 2024, aimed to expand the definition of a “broker” to include DeFi platforms, wallet providers, and non-custodial interfaces, requiring them to report user data via Form 1099—something the crypto community viewed as both unworkable and damaging to innovation.

The resolution, H.J.Res.25, was spearheaded by Rep. Mike Carey (R-Ohio) and Sen. Ted Cruz (R-Texas). It passed the Senate on March 4 and the House on March 11, followed by a final Senate vote on March 26. Trump’s signature now makes it the first crypto-related bill ever signed into U.S. law, and the first tax-related Congressional Review Act (CRA) of Disapproval to be enacted.

This new law not only strikes down the IRS rule permanently but also prevents the agency from introducing similar rules in the future without Congress's direct approval. Lawmakers called the IRS rule a “midnight regulation” pushed through during the final days of Biden’s term.

Why This Matters:

Regulatory Relief: DeFi platforms and wallet providers are no longer at risk of being classified as brokers, sparing them complex reporting requirements.

Industry Boost: The move is being celebrated across the crypto ecosystem as a step toward fostering innovation rather than stifling it with burdensome regulations.

Shift in Washington: This is part of a broader pro-crypto regulatory pivot under the Trump administration. Lawsuits by the SEC against major crypto firms (Coinbase, Kraken, Consensys) have been dropped, and the Department of Justice disbanded its National Cryptocurrency Enforcement Team on April 8.