Trump Signs Historic Crypto Bill, Overturns DeFi IRS Rule in First Presidential Move

Key Takeaways:

President Trump signed the first-ever crypto-related bill into U.S. law, repealing the IRSs DeFi Broker Rule.
The decision removes tax reporting requirements for decentralized platforms, easing regulatory burdens.
Crypto leaders hail the move as a turning point for digital asset regulation and DeFi innovation in the U.S.

President Donald Trump has officially signed a landmark crypto bill into law, repealing the controversial DeFi Broker Rule introduced by the IRS during the Biden administration. The bill, backed by bipartisan support, marks the first cryptocurrency-specific legislation ever signed by a U.S. president and a major victory for the decentralized finance (DeFi) sector.

DeFi Broker Rule Repealed

The repealed IRS rule would have required decentralized finance platformsoften governed by automated smart contracts rather than centralized entitiesto collect and report taxpayer information in the same way traditional brokers do.

Industry leaders and lawmakers had opposed the rule from the start, calling it both impractical and damaging to innovation. Critics argued that DeFi protocols, by design, lack the infrastructure or central authority necessary to comply with such mandates.

The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS, said Rep. Mike Carey (R-Ohio), who sponsored the bill and attended the signing ceremony at the White House on April 10.

A First for U.S. Crypto Legislation

Trumps signature on the bill not only ends the short-lived DeFi reporting mandate but also sets a precedent. This is the first crypto legislation to pass under the Congressional Review Act (CRA) and ensures that similar rules cannot be reinstated by future administrations without new Congressional approval.

The rule, finalized at the end of 2024, would have impacted self-custodial wallet providers and developers of decentralized protocols, requiring them to submit detailed transaction reports to the IRS.

Under the CRA, Congress successfully used its authority to rescind the regulationreasserting its original intent for how the Infrastructure Investment and Jobs Act (IIJA) should be interpreted.

Strong Political Momentum

Despite its origins in a polarized political climate, the repeal saw broad bipartisan support in both the House and Senate. Lawmakers from both parties acknowledged the technological constraints of applying such regulations on DeFi systems and the negative impact it would have on Web3 development in the United States.

Senator Ted Cruz of Texas spearheaded the Senate campaign. At the executive level, Trumps AI and crypto advisor David Sacks labeled the regulation a midnight rule from the prior administration and pushed for its immediate repeal.

Crypto advocacy groups and industry executives quickly celebrated the decision as a major shift in Washingtons approach to digital assets.

Implications for Bitcoin and Crypto Markets

The broader crypto market responded with mixed signals. Although Bitcoin briefly rallied following Trumps earlier announcement on tariff reductions, it dropped back to around $79,500 on the same day the bill was signedsuggesting the market had already priced in the regulatory news.

Grayscale, in a recent research, observed that Trumps tariff proposals might first stress Bitcoin because of growing economic uncertainties. On the other hand, over the longer run, tariffs could create stagflation-like situationsa situation where inflation increases and GDP growth slowsdriving demand for non-sovereign sources of value such as Bitcoin.

Future Outlook and Legal Protections

This law doesnt just nullify the previous ruleit bars future administrations from reinstating similar DeFi reporting requirements without new legislation. This means DeFi platforms and wallet developers now have legal assurance that they will not be subject to broker-level obligations unless Congress passes a new bill.

For now, it appears the U.S. is charting a more crypto-friendly course under Trumps leadership. With increasing alignment between policymakers and crypto stakeholders, future digital asset policies may lean toward innovation rather than enforcement.

This is just the beginning, said Rep. Carey. America must lead the world in blockchain innovationand today, we took a major step forward.

The post Trump Signs Historic Crypto Bill, Overturns DeFi IRS Rule in First Presidential Move appeared first on CryptoNinjas.

Text source: CryptoNinjas

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