Trump Rejects Biden-Era Crypto Tax Rule with New Resolution
U.S. President Donald Trump signed a resolution to annul a contentious cryptocurrency tax regulation that was finalized near the close of the Biden administration.
On Thursday, April 10, Trump formally signed a resolution repealing the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges Rule.
Established in December 2024 by the Internal Revenue Service (IRS), the regulation expanded the definition of ‘broker’ to encompass decentralized finance (DeFi) platforms and other intermediaries of digital assets.
Trump Repeal IRS Tax Rule
The regulation would have mandated “participants in the decentralized finance sector” to function similarly to conventional securities brokers, requiring them to gather and disclose user trading information. Additionally, the regulation would have compelled them to provide Form 1099 tax returns to clients, detailing nonemployment income such as gambling profits, rental income, and royalties.
Opponents contended that the regulation was “intrinsically impractical” because DeFi platforms run via automated code on blockchains, lacking human oversight or visibility into user identities.
In March, the Senate, followed by the House, voted to rescind the regulation, which returned to the Senate once more due to its association with a budgetary provision. The votes received Democratic backing, including from Senate Minority Leader Chuck Schumer, although most support primarily came from Republicans.
Representative Carey was present at the signing event and remarked that the legislation represented a historic achievement. He noted that it was the inaugural crypto law in American history to be officially enacted.
“By repealing this misguided rule, President Trump and Congress have allowed the IRS to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles,” Carey said.
Crypto Community Response
The DeFi Education Fund’s executive director, Amanda Tuminelli, said in a statement that Trump’s signature officially ends the IRS’s broker rulemaking.
“The DeFi Education Fund commends all members of Congress who supported this resolution, recognizing the importance of protecting software developers and promoting the development of decentralized technologies,” Tuminelli said. “President Trump’s signature is a critical signal change for the crypto industry: the United States has embraced a sensible, forward-thinking approach to digital assets.”
Repealing the rule was a victory for innovation and privacy, as it will promote the ongoing development of open, permissionless technologies. It also frees many in the DeFi ecosystem from the risk of enforcement actions for refusing to comply with rules they believed were unworkable.
