The President of the United States, Donald Trump, signed a law on Thursday which cancels an internal rule of the income service which would have forced exchanges of decentralized cryptography, in accordance with the declaration of declaration of brokers.
Trump, the action of the congress cancels the regulation of the Biden era
According to a report by Reuters and other media, the bill aims for a rewritten IRS rule published in the last weeks of the Biden administration in December. The regulations had expanded the definition of a “broker” to include decentralized financing platforms, or DEFI exchanges.
The Congress used the Congressal Review ACT in order to cancel the revision, with the Chamber and the Senate in March to repeal the rule. The Congress Examination Act allows legislators to reverse the new federal rules using a simple majority.
The revised rule would have been vehemently criticized by representatives of the cryptocurrency industry. They said it imposed unrealistic compliance obligations on DEFI platforms.
🚨 History made 🚨
Just now, @Potus I signed my bill to repeal to the IRS DEFI Crypto Broker rule.
This is the first cryptocurrency bill never signed by a president.@Housegop Work to keep America as a cryptographic world capital!
– The Mike Carey Congress member (@repmikecarey) April 10, 2025
DEFI platforms: technically impossible compliance
The initial framework of the IRS is from the law on investments and jobs of the bipartisan infrastructure investment of 1 Billion 2021. It required that the digital asset brokers submit tax forms to the IRS as well as to the holders of digital assets to help the tax declaration, Reuters and others have disclosed.
While exchanges such as Coinbase and Kraken act as intermediaries between sellers and buyers, DEFI exchanges use a different system. They allow direct exchange on blockchain networks without intermediary.
Total crypto market cap at $2.5 trillion on the daily chart: TradingView.com
Crypto supporters said that this intrinsic distinction made IRS regulations untenable for DEFI platforms. According to sources of industry stakeholders, these decentralized exchanges have no visibility on user identities and are therefore technologically unable to meet the requirements of typical broker reports.
Image: Americans Overseas
Trump makes the campaign to be pro-Crypto-Monnaie
The signature of the bill is suitable for Trump’s electoral campaigns to adapt to the cryptocurrency industry. In his candidacy for the presidency, Trump made sure to be a “president of cryptography” and took financial support from the sector promising to help increase the adoption of digital assets.
The quarter regulation highlights the challenges in the process of tax compliance
The change of rule IRS under the Biden administration had sought to repress potential tax evasion by cryptocurrency users. Tax authorities have long fought to ensure that they can comply with compliance in the rapidly growing digital asset sector.
The reversal underlines the current tension between the government’s attempts to seize the tax revenue of cryptocurrency transactions and the technical realities of decentralized systems.
For the crypto sector, in particular the DEFI protocols, the bill is a great regulatory victory. It eliminates an obstacle of conformity that many in space had insisted that it was not simply difficult, but in fact structurally impossible to comply according to the nature of their technology.
The White House has not yet been public which alternative steps could be offered to solve the problems of tax reports of cryptocurrencies.
Star image of Alex Brandon / Associated Press, tradingView graphic
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