11.04.2025 10:11
U.S. President Trump signed an executive order that cancels the controversial rule requiring decentralized finance (DeFi) protocols to report to the Internal Revenue Service (IRS). The decision, seen as a historic step for the crypto world, has created a sense of relief in the sector.
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The President of the United States (USA), Donald Trump, has officially signed a joint congressional resolution that repeals the regulation imposed during the previous administration, which required decentralized finance (DeFi) protocols to report transactions to the Internal Revenue Service (IRS). This step, taken as a result of intense lobbying by the crypto industry, marks the first private crypto bill to be enacted in history. The decision was described by industry representatives as a significant victory that paves the way for American innovation.
Congress approved: The USA has ushered in a new era in crypto
The regulation, which foresaw extensive reporting by decentralized finance (DeFi) protocols to the Internal Revenue Service (IRS) and was introduced during the Biden administration, was canceled by a joint resolution quickly prepared by Congress. The relevant rule aimed to require detailed reporting of gross revenues from DeFi platforms and the taxpayers conducting transactions by 2027. However, the repeal bill, supported by Ohio Representative Mike Carey, was signed by Trump on April 10, thus repealing the regulation.
Proponents of the decision emphasized that the DeFi Broker Rule imposed unnecessary bureaucratic burdens and infringed on investor privacy. Critics, however, argued that the repeal of the rule would create a new loophole for wealthy tax fraudsters. Nevertheless, Congress, which quickly completed the Senate and House of Representatives processes, presented the final decision for Trump's approval. The former President signed the bill as expected, thus officially enacting a bill in the crypto industry for the first time.
Crypto advocacy groups and industry representatives point out that innovation will increase in the new era. Kristin Smith, CEO of the Blockchain Association, stated that the industry has finally "taken a breath of relief," and that developers and founders in the USA will accelerate their efforts. On the other hand, regulatory agencies indicate that they will largely relax their strict stance and sanction policies towards crypto firms. The Trump administration aims to provide a more friendly climate for crypto initiatives by stepping back from the previous administration's Securities and Exchange Commission approaches.
As a result, the relief from the extensive reporting burden for DeFi platforms could directly affect both institutional and individual investors. Although criticisms continue, the USA's decision to repeal this regulation has the potential to chart a new course in the global crypto ecosystem.
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