{"id":21761,"date":"2025-04-11T21:47:06","date_gmt":"2025-04-11T21:47:06","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21761"},"modified":"2025-04-11T21:47:06","modified_gmt":"2025-04-11T21:47:06","slug":"trump-signs-bill-repealing-irs-defi-broker-rule-in-crypto-industry-win","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21761","title":{"rendered":"Trump Signs Bill Repealing IRS DeFi Broker Rule in Crypto Industry Win"},"content":{"rendered":"
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In a landmark move, US President Donald Trump on April 10 signed into law a resolution repealing the IRS\u2019s controversial \u201cDeFi Broker Rule\u201d and effectively blocked expanded tax reporting requirements for decentralized finance platforms.<\/p>\n

The measure, introduced by Representative Mike Carey (R-Ohio) and supported in the Senate by Senator Ted Cruz (R-Texas), used the Congressional Review Act (CRA) to reverse the IRS rule finalized in late 2024. The law now prevents similar regulations from being reintroduced without new legislation.<\/p>\n

DeFi Broker Rule Scrapped<\/h2>\n

The IRS rule in question aimed to broaden the definition of a \u201cbroker\u201d to include developers of self-custodial wallets and DeFi applications \u2013 platforms that allow users to exchange digital assets directly without intermediaries.<\/p>\n

Originally stemming from the 2021 Infrastructure Investment and Jobs Act, the rule sought to close perceived tax gaps in crypto trading by requiring these entities to report user transaction data to both the IRS and taxpayers. It was scheduled to take effect in 2027.<\/p>\n

Critics argued that the rule was incompatible with how decentralized platforms operate. Unlike traditional brokerages, DeFi platforms typically do not collect or store personal information, which would make compliance with IRS reporting standards technically unfeasible.<\/p>\n

Industry experts also warned that the rule could drive innovation offshore, as developers and companies might relocate to jurisdictions with less stringent oversight. Supporters of the rule, including some Democratic lawmakers, maintained that without such requirements, high-income crypto investors could exploit regulatory loopholes to avoid taxation.<\/p>\n

Representative Carey hailed<\/a> the repeal as a win for innovation and taxpayer privacy. He also praised President Trump\u2019s support, aligning it with the administration\u2019s broader pro-crypto agenda.<\/p>\n

\n

\u201cThe DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn\u2019t have the infrastructure to handle during tax season. I thank President Trump for signing this important bill into law and Crypto Czar Sacks for his leadership in supporting America\u2019s continued place as the global leader in the emerging crypto industry.\u201d<\/p>\n<\/blockquote>\n

Regulatory Reset<\/h2>\n

Since returning to office, Trump has formed a federal crypto task force and advocated for policies that encourage blockchain development.<\/p>\n

The bill\u2019s swift passage through Congress \u2013 clearing<\/a> the House on March 11 and the Senate on March 26 \u2013 signals growing momentum within the Republican-led legislature to scale back regulatory intervention in crypto markets.<\/p>\n

The Trump administration has adopted a more supportive stance on cryptocurrency and has signaled a complete shift<\/a> in regulatory posture by scaling<\/a> back the Securities and Exchange Commission\u2019s (SEC) aggressive approach under former Chair Gary Gensler.<\/p>\n

Several investigations and legal actions initiated against crypto companies during the Biden era have been dropped, and the securities regulator has started engaging with industry players to reassess its regulatory framework.<\/p>\n

The post Trump Signs Bill Repealing IRS DeFi Broker Rule in Crypto Industry Win<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In a landmark move, US President Donald Trump on April 10 signed into law a resolution repealing the IRS\u2019s controversial \u201cDeFi Broker Rule\u201d and effectively blocked expanded tax reporting requirements for decentralized finance platforms. The measure, introduced by Representative Mike Carey (R-Ohio) and supported in the Senate by Senator Ted Cruz (R-Texas), used the Congressional […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-21761","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21761"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21761\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}