President Donald Trump signs first US crypto regulatory bill into law
- President Donald Trump has officially become the first US president to sign a crypto bill into law.
- The new law prevents the IRS from demanding tax returns from decentralized service providers.
- The bill received bipartisan support before reaching the President's desk.
President Donald Trump signed a bill on Thursday that repeals the Internal Revenue Service's (IRS) DeFi broker rule in the United States (US), preventing DeFi platforms from submitting the tax information of their users.
President Trump signs law to repeal IRS DeFi broker rule
US President Donald Trump signed a bill into law, overturning an IRS rule introduced during the Biden administration.
This marks Trump's first legislative action on crypto regulations and the first time a US president has enacted a crypto law.
The overturned IRS DeFi broker rule obligated decentralized finance (DeFi) platforms to report users’ tax information like traditional financial brokers, making it difficult for them to maintain privacy.
"Repealing the IRS's DeFi broker rule protects innovation and privacy — another major step toward ushering in a golden age for digital assets," said Bo Hines, Executive Director of the White House Crypto Council, in an X post on Thursday.
The DeFi broker rule was unveiled in the closing moments of the Biden administration and quickly drew criticism from crypto industry leaders. Industry experts argued that DeFi platforms operate without centralized structures and lack access to user identities, making adherence to reporting requirements practically impossible.
The bill to overturn the DeFi broker rule, introduced by Senator Ted Cruz, received strong bipartisan backing following a Senate decision of 70 – 28 votes last month. This showcased support from lawmakers in abolishing the rule — most of whom had previously argued that it would hinder growth in the DeFi sector.
"The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn't have the infrastructure to handle during tax season," Congressman Mike Carey stated in an X post.
The law marks another step forward in the Trump administration's promise of proper regulatory measures for the crypto industry.
Earlier in the week, the Department of Justice (DOJ) closed its unit in charge of crypto investigations, stating that it does not directly regulate crypto companies.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
