In a historic victory for the cryptography industry, President Donald Trump signed the legislation reversing an IRS rule which treated decentralized financing platforms (DEFI) as brokers. The now disappeared rule, introduced in the last days of the Biden administration, would have forced DEFI platforms to follow and report user transactions – by placing a heavy regulatory burden on the sector.
Supported by representative Mike Carey (R-Ohio), the repeal was adopted with strong bipartisan support in the Chamber and the Senate. Using the Congress Review Act, legislators have not only eliminated the rule, but also prohibited the IRS from introducing similar regulations to the future.
Although closely concentrated, this marks the first Pro-Crypto initiative to be able to cross the US Congress. Development indicates increasing legislative support for blockchain innovation and could open the way to broader regulatory efforts.
DEFI tax concerns are now resolved, legislators focus on stable legislation. The bills aimed at regulating stablecoin issuers have already progressed through key committees in the two chambers and await votes on the ground. If the two versions adopt, the Congress would begin negotiations to merge them into a single complete law.
President Trump urged the congress to deliver the finalized bill of Stablecoin to his office by August. Legislators behind the initiative remain optimistic about compliance with the deadline, which could mark another central moment for the regulation of American cryptography.
This legislative dynamic suggests a favorable environment for future policies related to cryptography and positions the United States as a potential leader in blockchain regulation. The cryptography industry is now looking closely while the congress moves to the implementation of long -awaited market rules and regulatory clarity for digital assets.
