Trump Signs Law Overturning IRS Crypto Rule Targeting DeFi

On Thursday, U.S. President Donald Trump signed a law overturning an IRS rule that would have required decentralized crypto exchanges to comply with broker reporting obligations. This action, confirmed by the White House, repeals a regulation issued in December by the Biden administration that broadened the definition of a "broker" to include DeFi platforms. The Congressional Review Act was used to void the revision after both the House and Senate voted in March to repeal the rule. Crypto industry representatives criticized the initial IRS framework, arguing it imposed unrealistic compliance obligations on DeFi platforms, which lack visibility over user identities and the technological capability to meet typical broker reporting requirements. This reversal is a significant regulatory win for the crypto sector, particularly DeFi protocols, eliminating a compliance hurdle deemed structurally impossible to meet.