Trump signs the law of cryptography.

In a historic decision for the cryptocurrency sector, president Donald Trump signed a resolution reversing a controversial IRS rule introduced under its predecessor Joe Biden.

What happened: The regulations in question required decentralized financing platforms to comply with the same taxpayers’ declaration standards as traditional financial intermediaries.

This marks not only the first legislative action linked to Trump’s crypto, but also the first time that an in-office president has signed a bill specific to cryptocurrency.

The bill cancels the DEFI broker’s rule proposed by the IRS, which had attracted ferocious criticism of industry and legislators for its unspeakable requirements and its confidentiality implications.

Representative Mike Carey (R-Ohio), who was present at the signature, said that the inversion gives the IRS a chance to focus on its existing responsibilities.

He noted that the repealed rule would have overwhelmed the agency during the tax season and brought the privacy of everyday Americans.

The legislation obtained rare bipartisan support in the two chambers of the congress, highlighting a large dissatisfaction with the rule, even among the Democrats only a few months after the departure of Biden.

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Why is it important: Crypto Advocates argued that the IRS rule was poorly suited to DEFI protocols, which operate independently via smart contracts and could not comply realistically with traditional tax frames based on brokers.

Despite a strong opposition, the rule was finalized in the last days of Biden’s mandate, which caused the pro-Crypto legislators and stakeholders in the industry.

David SacksThe crypto and the AI ​​advisor to the Trump administration, described the IRS rule a “midnight regulations” and warned that it would remove innovation, the developers of the charge and threaten the confidentiality of users.

Thursday’s signature was greeted by the cryptographic community as a significant step forward.

Amanda TuminelliExecutive director of the DEFI EDUCATION FUND, described The Move a turning point in American cryptography policy, congratulating it as a change towards more thoughtful and practical regulations of digital assets.

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