President Donald Trump has formally enacted a resolution rescinding the IRS DeFi Broker Rule implemented by the previous administration.
In a statement released on April 10, Rep. Mike Carey (R-Ohio), who co-sponsored the bill with Sen. Ted Cruz (R-Texas), noted that the president’s approval of the legislation represents a significant victory for the cryptocurrency sector and its supporters within Congress.
The legislation abolishes an IRS DeFi broker rule that was finalized late in 2024, broadening the definition of “broker” to encompass decentralized finance platforms and various non-custodial digital asset services. This rule obligating DeFi platforms, wallet operators, and front-end protocol interfaces to gather user data and report crypto transaction details using Form 1099.
“This marks the first cryptocurrency-related bill to be enacted into law and also the initial tax-related Congressional Review Act of Disapproval to receive presidential approval,” stated Rep. Carey. He emphasized that the regulation “unnecessarily stifled American innovation” and would have inundated the IRS with compliance obligations it was not equipped to manage.
“With the repeal of this flawed rule, President Trump and Congress have provided the IRS an opportunity to refocus on its existing responsibilities to American taxpayers rather than adding a new layer of bureaucratic challenges.”
— Mike Carey, Congressman from Ohio
The resolution, designated as H.J.Res.25, was approved by the Senate on March 4, 2025, and by the House on March 11. Due to its budget-related considerations, the bill necessitated a final vote in the Senate, which took place on March 26, before being forwarded to the president for signature. Trump’s endorsement ensures that the rule “shall have no force or effect,” and bars the IRS from imposing a similar rule without clear Congressional approval under the CRA.
The White House had previously expressed support for the resolution, labeling the rule a “midnight regulation” introduced in the departing days of the last administration. This signing occurs amid a broader regulatory evolution in Washington. Recently, the Securities and Exchange Commission, under acting chair Mark Uyeda, withdrew lawsuits against companies like Coinbase, Gemini, and Kraken.
On April 8, the Department of Justice also dissolved its National Cryptocurrency Enforcement Team, referencing strategic errors. Additionally, Paul Atkins, a veteran SEC commissioner and pro-crypto advocate, is anticipated to officially assume his role as the new SEC chair following Senate confirmation.
With Atkins in position, industry experts expect the agency to pivot from strict enforcement to fostering a more encouraging environment for cryptocurrency innovation.