Trump Nullifies IRS DeFi Broker Rule
On April 11, 2025, President Donald Trump signed legislation that officially nullifies an IRS rule which had controversially categorized decentralized finance (DeFi) platforms as “brokers.” Under the original rule, DeFi projects would have been required to report user transaction data similar to centralized financial institutions, raising serious concerns among crypto advocates about privacy, compliance complexity, and feasibility. The rule was seen as a major hurdle for the DeFi industry, potentially stifling innovation and pushing developers out of the U.S. market.
Trump’s repeal of the rule marks a significant policy shift, signaling his administration’s broader pro-crypto stance. In recent months, Trump has doubled down on his support for blockchain technologies, establishing a federal bitcoin reserve and launching a national cryptocurrency working group to shape regulatory frameworks. Supporters of the repeal argue that it provides regulatory clarity and removes burdensome requirements, allowing the U.S. to remain competitive in the rapidly evolving digital asset space.
Critics, however, warn that loosening oversight could invite increased illicit use of DeFi platforms and complicate tax enforcement. Some lawmakers and financial watchdogs argue that without appropriate reporting standards, it will be harder to track gains, prevent fraud, and ensure market integrity. Nonetheless, the repeal has been widely celebrated across the crypto industry as a victory for decentralization and a step toward friendlier regulations in the United States.
