President Trump Repeals Biden’s IRS DeFi Broker Rule

On April 10, U.S. President Donald Trump signed a joint congressional resolution overturning the IRS DeFi Broker Rule. This Biden-era regulation would have classified decentralized finance (DeFi) platforms as brokers and required them to report users’ crypto transactions to the Internal Revenue Service (IRS).

IRS DeFi Broker Rule Would Have Stunted American Innovation

In a press release, U.S. Representative Mike Carey of Ohio confirmed he was present at the White House as President Donald Trump signed the resolution to repeal the IRS DeFi Broker Rule.

https://twitter.com/RepMikeCarey/status/1910463202216886513

According to Representative Carey, the IRS DeFi Broker Rule posed a serious threat to American innovation. The rule would have forced developers of noncustodial software and self-custodial digital wallets to report crypto transactions directly to the IRS, even if they had no direct control over user funds.

This approach, he explained, would have overwhelmed the revenue service during tax season and compromised the privacy of Americans.

He believed the rule would put a burden on developers and flood the IRS with crypto transaction reports it wasn’t ready to handle.

The original rule, finalized at the end of 2024, was set to take effect in 2027. Critics widely condemned it for misinterpreting how decentralized finance works and for painting every software developer with the same brush as a traditional broker.

The push to repeal the rule began gaining traction in early 2025.

On February 26, Rep. Carey’s bill to overturn the IRS DeFi Broker Rule passed through the House Ways and Means Committee.

In March, the Senate followed suit with a strong 70–27 vote to repeal the regulation. The resolution passed the House of Representatives in the same month and finally landed on President Trump’s desk.

https://twitter.com/RepMikeCarey/status/1899579542961897884

By signing the resolution into law on April 10, President Trump effectively blocked the IRS DeFi Broker Rule from ever going into effect.

Many in the crypto space welcomed this decision, seeing it as a turning point for how the U.S. government engages with blockchain technology and digital assets.

For industry advocates, this repeal protected privacy and opened the door for innovation and clearer, more practical regulation.

Trump’s Position on Crypto Set to Fuel Major Industry Expansion

President Trump’s decision to repeal the IRS DeFi Broker Rule is more than just a single win, as it reflects a growing pattern of crypto-friendly actions that are shaping the U.S. digital economy.

Last month, several fintech and crypto firms began applying for state and national bank charters. These companies believe the Trump administration is creating a more supportive environment for digital finance.

MoonPay, a major platform for crypto payments, secured a Money Transmitter License (MTL) from Wisconsin’s Department of Financial Institutions.

This license gives the company legal clearance to operate in Wisconsin, expanding its reach in the U.S. market.

The company credited the current regulatory atmosphere as a key reason behind its recent progress.

Meanwhile, Coinbase CEO Brian Armstrong announced plans to hire 1,000 employees across the U.S. this year.

He pointed to the Trump administration’s crypto-positive stance and Congress’s growing support for crypto bills as a major factor in their decision to scale operations locally.

In Washington, the conversation around digital assets is also evolving. The U.S. Securities and Exchange Commission recently announced a new initiative aimed at improving clarity in the crypto space.

Through its Crypto Task Force, the SEC will hold multiple roundtables with industry leaders, legal experts, and developers to explore practical steps toward clearer crypto regulation.

Supporters of the industry are hopeful that this shift in tone will encourage more investment, clearer rules, and greater innovation in blockchain technology.