Trump repeals IRS rule on DeFi tax reporting
On April 10, President Donald Trump signed a resolution overturning an IRS rule that would have required decentralised finance (DeFi) platforms to report detailed transaction data to the tax authority.
The repealed regulation, introduced during the Biden administration in December 2024, sought to classify DeFi platforms as brokers, obligating them to disclose gross proceeds from crypto sales and provide taxpayer information.
Critics argued that the rule was unworkable due to the decentralised nature of these platforms, which often lack centralised entities capable of fulfilling such reporting requirements.
The resolution gained bipartisan support in Congress.
The Senate passed it with a 70-27 vote on March 4, followed by the House's approval on March 11 with a vote of 292-132.
“The DeFi broker rule invades the privacy of tens of millions of Americans, hinders the development of an important new industry in the United States and would overwhelm the IRS,” stated Republican Representative Mike Carey, who led the repeal effort.
Similarly, House Financial Services Committee Chairman French Hill criticised the rule as “a clear example of government overreach.”
The crypto industry welcomed the repeal.
Blockchain Association CEO Kristin Smith described it as a significant victory for DeFi and U.S. crypto innovation.
Opponents of the rule had warned it could stifle innovation and drive developers offshore.
White House officials also expressed concerns about privacy risks and compliance burdens under the rule.
David Sacks, Trump’s AI and crypto czar, emphasised that it would “stifle American innovation” while imposing excessive demands on DeFi companies.
The IRS had estimated that between 650 and 875 DeFi platforms would be affected by the rule, with enforcement slated for 2027.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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