By Hannah Lang
(Reuters) -US President Donald Trump signed a bill on Thursday to cancel a revised rule of the Internal Internal Service which has expanded the definition of a broker to include exchanges of decentralized cryptocurrency, according to a white house statement.
In the past few weeks of the Biden administration in December, the IRS updated its crypto -tax report rule according to which it had finalized earlier in 2024 to specify that its new guidelines would also apply to decentralized – or challenge exchanges.
The House of Representatives and the Senate voted in March to cancel the revision through the Congressal Review Act, which allows the Congress to reverse the new federal rules with a simple majority.
The cryptocurrency industry had criticized the revised rule, saying that it was impassable for the DEFI platforms and called on the Republicans to cancel it.
Centralized exchanges such as Coinbase and Kraken act like the intermediary between buyers and sellers, while the DEFI exchanges aim to cut the middle of the intermediary and to allow users to transform directly on a blockchain network, which feeds cryptocurrencies.
Participants in the crypto industry argued that because the DEFI exchanges do not act as intermediaries, they have no visibility on who are their users, which makes it impossible to comply with the rules of the IRS.
The new IRS executive finalized last year aimed at repressing crypto users who may not pay their taxes and came from the investment law and investment infrastructure and employment investment at 1 dollars. It forced digital asset brokers to send the forms to IRS and digital asset holders to help their tax preparation.
Trump on the campaign campaign is committed to being a “president of cryptography” and courted the money in the industry by promising to promote the adoption of digital assets.
During his first week in power, Trump ordered the creation of a cryptocurrency working group responsible for offering new regulations on digital assets and signed an executive decree in March to create a federal stock of Bitcoin.
(Report by Hannah Lang in New York; additional report by Ismail Shakil; edition by Lincoln Feast.)
