On April 10, 2025, President Donald Trump signed legislation nullifying an IRS rule that would have classified decentralized finance (DeFi) platforms as "brokers" for tax reporting purposes. The rule, introduced in late 2024, sought to increase compliance by requiring DeFi services to report user information to the IRS.
The crypto industry had strongly opposed the measure, arguing that DeFi protocols operate without intermediaries and therefore lack the infrastructure to collect such data. Lawmakers in both the House and Senate voted to overturn the rule under the Congressional Review Act.
The now-defunct IRS framework originated from the 2021 Infrastructure Investment and Jobs Act and was designed to address tax evasion in digital asset markets. Trump’s decision to repeal the rule aligns with his ongoing efforts to position himself as a pro-crypto leader. His broader platform includes support for digital asset innovation, a federal bitcoin reserve, and a national task force on crypto regulation.
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