In a historic moment for the crypto industry, Donald Trump has signed the first-ever crypto-specific bill into law. The milestone for digital assets in the US was set on April 10, 2025. The bill in question repeals a controversial IRS rule targeting decentralized finance (DeFi) platforms.
The regulation, implemented during the final days of the Biden administration, had classified DeFi exchanges as brokers, requiring them to collect and report user data to the IRS. The move was widely criticized by the crypto industry, which argued that DeFi platforms, lacking intermediaries, cannot comply with such regulations.
The repealed rule was part of broader efforts to strengthen crypto tax reporting, stemming from the 2021 Infrastructure Investment and Jobs Act. It aimed to prevent tax evasion by expanding reporting requirements to DeFi exchanges. However, the crypto community and lawmakers argued that this rule unfairly constrained innovation and privacy.
Both the House and Senate voted to overturn the rule using the Congressional Review Act, which allows Congress to reverse new federal regulations with a simple majority. The Trump administration supported this legislation, viewing it as essential for protecting American innovation and privacy.
This first-ever crypto-focused bill to be signed into law by a US president contributes to relieving anxieties about the future of DeFi and may pave the way for more crypto-friendly policies, including potential stablecoin regulation. However, as noted by Bloomberg Law, Democrats have raised concerns that the repeal will weaken the IRS’s ability to enforce tax compliance – in contrast with stricter measures in the EU and OECD – potentially leading to increased tax evasion.
For the industry, the focus now shifts to broader crypto legislation, such as regulating stablecoin issuers and establishing market protocols for cryptocurrency transactions. Proposals are moving through committees in both the House and Senate, with the aim of combining these initiatives into a unified compromise.
