Trump Revokes IRS Regulation Impacting DeFi Platforms Amid Tax Policy Shift
President Trump has eliminated the IRS rule that mandated DeFi platforms to report user transactions, representing a significant policy shift in crypto regulation.
On April 10, 2025, President Donald Trump enacted legislation that repealed an IRS rule compelling decentralized finance (DeFi) platforms to disclose user transaction data. This measure was initially introduced under the Biden administration to combat tax evasion in the crypto sector but was criticized for its impracticality. Critics, including industry leaders and lawmakers, argued it was impossible for DeFi protocols, which operate without centralized control or customer data, to comply.
Legislative Response to Trump Tax Reform
The backlash against the regulation culminated in Congress using the Congressional Review Act to repeal the rule. The Senate voted against it 70-28, following a House vote of 292-132.
馃毃馃嚭馃嚫 TRUMP TO SIGN FIRST-EVER CRYPTO BILL鈥擠EFI BROKER RULE IS DEAD
The Senate just crushed the IRS’s DeFi surveillance rule 70-28 after the House already demolished it 292-132, handing crypto developers a massive win against government overreach. – Mario Nawfal (@MarioNawfal)
Republicans spearheaded the repeal, heralded by Rep. Mike Carey and Sen. Ted Cruz, asserting that the rule stifled innovation in the evolving sector of cryptocurrency.
Implications of Trump’s Tax Adjustments for Crypto
The repeal of the regulation invigorates the DeFi development community, sparing them from the burdensome requirement to track and report user activity. However, some experts express concerns that the lack of comprehensive reporting may hinder the IRS鈥檚 capacity to monitor tax liabilities in the DeFi realm, raising doubts about sustainable growth in this sector without some form of accountability.
Future of IRS Crypto Reporting
This action is part of a broader trend in Trump’s administration to adopt a more innovation-friendly approach toward cryptocurrency policies, which includes establishing a national Bitcoin reserve and assigning a working group to refine federal regulations concerning digital assets.
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