Historic Win for Crypto: Trump Axes IRS Rule Targeting DeFi

In a pivotal move for the crypto sector, especially decentralized finance (DeFi), former U.S. President Donald Trump has officially nullified an IRS regulation that would have imposed sweeping tax reporting obligations on DeFi platforms.

The controversial rule, introduced under the previous administration, was scheduled to take effect in 2027 and aimed to classify DeFi protocols as brokers. If enforced, it would have required these platforms to report detailed transaction data—including user identities and gross proceeds—to the Internal Revenue Service.

Trump put an end to the proposal on April 10 by signing a joint resolution passed by Congress, effectively blocking the rule from ever being implemented.

Representative Mike Carey, one of the resolution’s key supporters, celebrated the decision, arguing that the measure would have stifled innovation, compromised user privacy, and placed an impossible administrative burden on the IRS.

This marks the first time any crypto-related legislation has been formally signed into U.S. law, setting a precedent that could influence future regulatory direction.

Cardano founder Charles Hoskinson weighed in on the broader implications, suggesting that as regulatory clarity improves in the U.S., major tech players will become more active in the blockchain space.

He also warned that existing crypto projects may need to rethink their tokenomics and adopt more collaborative models to stay competitive in a rapidly evolving environment.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.