President Trump Signs Resolution Erasing IRS Crypto Rule Targeting DeFi

The successful reversal of the Internal Revenue Service rule marks the first time the industry got a significant pro-crypto effort through Congress.

• President Donald Trump has signed a congressional resolution that eliminates an Internal Revenue Service rule approved in the last days of the Biden administration, which would have had a significant effect on DeFi projects.
• Congress killed the tax regulations with strong bipartisan votes.
• This is the first such pro-crypto effort to advance all the way through Congress.

President Trump has recently signed a resolution aimed at erasing an IRS rule that targeted decentralized finance (DeFi) projects. This move is significant as it marks the first time the crypto industry has successfully passed a pro-crypto initiative through Congress.

The abolished IRS regulation, which would have categorized DeFi platforms as brokers requiring them to monitor and report user activities, was overturned with bipartisan support from Congress. This decision not only nullified the rule established in the previous administration but also prohibits similar future actions by the IRS.

Representative Mike Carey, a Republican from Ohio, confirmed the formal removal of this narrowly focused IRS rule. The utilization of the Congressional Review Act effectively prevented any semblance of such regulations in the future.

This reversal showcases a milestone for pro-crypto efforts in Congress, emphasizing its strength within both chambers. The united front displayed by Senators and House members underscores positive prospects for the crypto industry on broader issues such as regulating stablecoin issuers and establishing market guidelines for crypto transactions.

President Trump has set a deadline for relevant legislation to reach his desk by August. Lawmakers involved in these initiatives remain optimistic about meeting this timeline.