April 15, 2025
By Anjali Kochhar
In a major win for the cryptocurrency industry, President Donald Trump has officially signed a bill repealing the IRS’s controversial rule that targeted decentralised finance (DeFi) platforms. The move marks the first major pro-crypto legislation to be signed into law in the U.S., signaling a significant shift in the regulatory landscape and a bold message of support for digital assets.
The IRS rule, introduced during the final phase of the Biden administration, aimed to classify DeFi platforms and wallet developers as “brokers,” subjecting them to traditional tax reporting requirements. This would have forced these platforms to report user transactions and gross proceeds, similar to centralised exchanges like Coinbase and Kraken. The rule sparked immediate backlash from the crypto industry, which argued that the requirements were both unworkable and a threat to user privacy.
President Trump’s signing of the repeal bill on April 10, 2025, comes after weeks of heated debate and bipartisan momentum in Congress. Senator Ted Cruz, who introduced the resolution under the Congressional Review Act, described the outcome as a “victory for American innovation.” He added, “An overwhelming bipartisan majority voted in support of my legislation to rescind this harmful regulation.” Similarly, Representative Mike Carey emphasised that the rule “hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings.”
The decision has been welcomed across the crypto space, with major figures and industry leaders praising the administration’s recognition of the unique nature of decentralised platforms. Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, remarked, “President Trump’s signing of the resolution to overturn the IRS rule targeting DeFi platforms marks a significant victory for the cryptocurrency industry. The repealed regulation sparked widespread opposition from the crypto sector. By eliminating this rule, the legislation reduces compliance burdens and fosters innovation while addressing privacy concerns for users and platforms. This milestone represents the first major pro-crypto legislation to receive presidential approval. It signals a deregulatory shift in U.S. policy toward emerging technologies, aligning with Trump’s campaign promises to support digital assets.”
Echoing this optimism, Anish Jain, Founder and CEO of the Singapore-based Web3 firm W Chain, stated, “The signing of repealing IRS rule by President Trump marks an important moment for the decentralised finance industry. This decision shows a clear understanding of the unique nature of DeFi platforms and their potential for driving innovation in the financial sector. By repealing the IRS rule on DeFi, we’re preserving the core principles of decentralisation and privacy that are fundamental to blockchain technology. This move will undoubtedly foster a more conducive environment for technological advancement and economic growth in the digital asset space.”
The Trump administration has expressed its full support for the repeal. David Sacks, crypto policy advisor to the White House, referred to the IRS’s DeFi rule as a “midnight regulation” that risked stifling innovation and compromising taxpayer privacy. “This is a step in the right direction,” he said, “toward a more responsible and innovation-friendly approach to regulating digital assets.”
While the repeal has been celebrated by many, some experts warn that loosening regulations too quickly could open the door to tax evasion and financial opacity. Still, the broader sentiment remains that the U.S. needs a forward-thinking and flexible approach if it hopes to remain competitive in the global crypto economy.
Looking ahead, this move could be the beginning of a broader realignment in how the U.S. government approaches blockchain and digital assets. As regulatory conversations around stablecoins, tokenized assets, and crypto taxation continue to evolve, the repeal of the IRS’s DeFi rule sends a powerful signal: the U.S. is open to innovation.
Rather than stifling progress with outdated rules, this legislation acknowledges the complexities of decentralised technologies and the need for smart, adaptive regulation. For developers, investors, and entrepreneurs in the crypto space, it’s a green light to build and a reminder that policy, when guided by understanding, can be a catalyst rather than a roadblock.
While challenges remain, one thing is clear: the conversation around crypto in Washington has changed. And with President Trump now staking his support behind the industry, the coming months could shape the future of digital finance not just in America, but worldwide.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
