Trump Signs Off on Major Win for DeFi, Blocks IRS Broker Rule

In a landmark move for the decentralized finance (DeFi) industry, former President Donald Trump has officially nullified a contentious IRS rule that sought to classify DeFi platforms as brokers—an attempt that would have required them to track and report users' financial activity.

The regulation, originally introduced during the final stretch of the Biden administration, faced heavy opposition from both industry leaders and lawmakers. Its formal repeal marks a significant policy victory for the crypto world, led in Congress by Representative Mike Carey of Ohio. Using the Congressional Review Act, lawmakers not only canceled the IRS requirement but also ensured that similar regulations cannot be resurrected without new legislation.

While the issue targeted a relatively narrow part of the crypto ecosystem, the implications are broad. This is the first time that a pro-crypto initiative has made it through both chambers of Congress and received a presidential signature, setting a new precedent for future crypto-related policy.

The bipartisan support for the resolution reflects growing momentum behind digital assets on Capitol Hill. Industry advocates are now turning their attention to upcoming legislation on stablecoins and broader crypto market regulations—both of which have cleared key committee hurdles and are awaiting full votes in the House and Senate.

President Trump has urged lawmakers to deliver a final version of the stablecoin bill by August, and congressional leaders have signaled that the timeline is still achievable.

With the DeFi tax threat now off the table, the crypto sector is eyeing the next major policy battles with renewed optimism.