President Trump signed a resolution on April 10, 2025, repealing the IRS DeFi broker rule, which was a Biden-era regulation requiring decentralized finance (DeFi) platforms to report transaction data and collect user information to the IRS.
The rule, finalized in December 2024, aimed to treat DeFi platforms like traditional brokers, mandating them to issue Form 1099s for tax reporting. Critics argued it was impractical due to DeFi’s automated, decentralized nature, which lacks human oversight and user identification capabilities. The repeal, passed under the Congressional Review Act with bipartisan support (Senate 70-28, House 292-132), prevents the IRS from reissuing similar rules without new congressional approval.
This move is seen as a win for crypto innovation and privacy, aligning with Trump’s pro-crypto stance, though some, like Rep. Lloyd Doggett, warned it could enable tax evasion. The Congressional Budget Office estimated the repeal might increase the federal deficit by $4.5 billion over a decade.
