Trump Signs Bill to Repeal IRS Reporting Rules on DeFi Platforms

Former U.S. President Donald Trump has signed a bill repealing a controversial IRS regulation that required decentralized finance (DeFi) platforms to collect and report user transaction data. The rule, introduced during the final phase of the Biden administration, had drawn widespread criticism from both lawmakers and the crypto industry.

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Bipartisan Support and Industry Backing

The bill passed through Congress with bipartisan support and officially took effect with Trump's signature. Representative Mike Carey, a vocal critic of the regulation, stated:

“The DeFi broker rule would stifle American innovation, violate privacy rights, and overburden the IRS.”

Carey added that repealing the rule would allow the IRS to refocus on its core mission rather than enforcing complex crypto surveillance mandates.

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Crypto Industry Applauds the Move

The decision has been welcomed by the digital asset community. Amanda Tuminelli, legal director at the DeFi Education Fund, said the repeal reflects a more favorable U.S. stance toward digital assets under Trump’s leadership:

“President Trump’s signature signals a clear direction in how the U.S. intends to approach digital asset regulation.”

DeFi advocates had long argued that the IRS regulation would cripple decentralized platforms by imposing burdensome compliance requirements that conflict with their underlying architecture.

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This development adds to Trump’s growing pro-crypto stance and could play a pivotal role in shaping Web3 policy discussions in the lead-up to the 2025 election cycle.