Trump Crypto News: IRS Rule Repealed, DeFi Gets Big Boost

Trump Crypto News Highlights IRS Rule Reversal, DeFi Relief Wins

In a significant development for the crypto sector, President Donald Trump has signed into law a bill that reverses a recent IRS regulation that is viewed as detrimental to decentralized finance (DeFi) platforms. The regulation, enacted at the end of President Joe Biden's administration, sought to treat these exchange platforms as conventional brokers and compel them to monitor and report user transactions.

But now, with strong support from both Republicans and Democrats in Congress, that rule is history. This is the first time a pro-crypto law has ever been made without congress and been signed into law by the President.

What Was the IRS Rule All About

The Trump crypto news, the regulation was part of new crypto tax reporting regulations enacted in 2024. It broadened the definition of "broker" to encompass DeFi exchanges. This would have obligated DeFi platforms to gather information on their users and transmit tax forms to the IRS and users. Many in the cryptocurrency space, though, said that this wasn't feasible, as DeFi platforms don't function like traditional exchanges.

DeFi platforms enable individuals to buy and sell digital coins directly using blockchain, cutting out a middleman like Coinbase or Kraken. That prevents them from really knowing who is on the platform or being able to follow transactions like a conventional broker.

Cryptocurrency communities criticized the IRS rule as unjust and damaging to innovation. They contended that the government didn't realize how DeFi operates and was applying outdated rules to new technology.

Congress Steps In with a Strong Message

In March, both the House and the Senate used the Congressional Review Act to vote against the IRS rule. The law provides Congress the ability to rescind new federal regulations with a majority vote. The vote had bipartisan support, indicating that the industry is finding increasing support in Washington. 

Trump's Support for Crypto Grows Stronger

In signing the bill, President Trump was living up to a promise made on the campaign trail—to be a "crypto president." In office, Trump has done various things to indicate favor to the digital asset industry. He even signed an executive order in March to establish a federal stockpile of Bitcoin and set up a crypto working group to develop new rules for the sector.

Now that the IRS rule is on the sidelines, the industry is looking to the next big thing—stablecoin regulation. Legislators have already taken steps on this and may pass a bill to the President by August.

What This Means for the Future

This move indicates that the U.S. government is beginning to pay attention to crypto and is willing to assist in its growth. It also sends a very direct message: DeFi is here to stay, and lawmakers will defend it. With stablecoin regulations and other regulations on the horizon, this may be the start of a new era for the digital economy.