Trump signed a resolution that nullifies an IRS crypto rule targeting decentralized finance (DeFi)

Trump signed a resolution that nullifies an IRS crypto rule targeting decentralized finance (DeFi) platforms.

This legislative action erases a Biden-era IRS regulation that redefined “brokers” to include DeFi platforms. The rule required them to report gross crypto sales and customer data. With Trump’s signature, that requirement is now legally dead.

Originally introduced as H.J. Res.25 by Rep. Mike Carey and Sen. Ted Cruz, the resolution prevents the IRS from enforcing this controversial mandate. The regulation would have compelled DeFi protocols and front-end services to file Form-1099 reports, disclosing user identities and transaction histories.

A victory for DeFi and innovation

Trump signed a resolution, as per the press release, after both chambers of Congress supported the measure in March. The House and Senate agreed that the rule placed unnecessary burdens on non-custodial platforms. Crypto advocates widely condemned the rule as stifling innovation and threatening user privacy.

Repealing this IRS rule means platforms no longer have to function as data collection agencies. The industry sees this as a major win for decentralization and user freedom.

Organizations like the Blockchain Association welcomed the move, saying the rule was incompatible with DeFi’s architecture. Compliance would have been nearly impossible for permissionless protocols.

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Trump signed a resolution in line with his pro-crypto stance

Trump’s decision aligns with his administration’s deregulatory tone. During his 2024 campaign and second term, he’s increasingly supported emerging technologies, including digital assets and blockchain.

By invoking the Congressional Review Act, the repeal not only erases the IRS rule but also bars the agency from issuing a similar rule again — unless Congress explicitly authorizes it. This adds a strong layer of protection for DeFi developers and users.

This moment signifies a broader shift in how lawmakers treat digital assets. TrumpClick here for more Details signs resolution amid growing concern over federal overreach in crypto. It sends a strong message: regulations should support, not stifle, innovation.

Crypto communities see this as a crucial step toward a more innovation-friendly U.S. policy environment. With fewer compliance barriers, DeFi projects may expand more rapidly, encouraging job creation and tech investment in the U.S.