Trump signs to repeal the controversial tax rules for the IRS DeFi platform, becoming the first effective encryption bill in the United States.

U.S. President Trump signed a joint resolution yesterday, officially repealing the controversial crypto tax legislation formulated by the IRS ( targeting DeFi operators during the Biden administration. This move not only symbolizes a significant shift in the U.S. stance on crypto assets policy but also marks the first legislation ever to be signed into law by a president, focusing on the crypto field.

Abolishing IRS DeFi Tax Rules: A Victory for Innovation and Privacy

The IRS rule, originally set to take effect in 2027 and described by Trump as the "Doomsday Bill," was passed at the end of December last year during the transition of the Biden administration. It attempts to expand existing tax reporting obligations by requiring all DeFi protocol platforms to report all users' transaction data, specifically including:

Requesting certain DeFi operators to report user personal data and transaction data like traditional brokers.

The operators are required to send the 1099 form, which reports non-employment income ) such as gambling winnings, rent, royalties, etc. ( tax forms.

The target audience is "platforms or websites that provide an interface for users to access Decentralized Finance, not targeting DeFi protocols."

) The US IRS's late-night new regulations have triggered a DeFi crisis! DeFi operators unite to file a lawsuit to defend innovation, a16z: The Treasury has overstepped its authority (

This move has sparked widespread criticism from the industry, which sees it as an open threat to the Decentralized Finance sector, potentially forcing industry professionals to flee the United States.

HISTORY MADE

Just now, @POTUS signed my bill to repeal the IRS Decentralized Finance Crypto Assets Broker Rule.

This is the first Crypto Assets bill EVER signed into law by a president.@HouseGOP is working to keep America as the crypto capital of the world!

— Congressman Mike Carey )@RepMikeCarey( April 10, 2025

Republican Congressman Mike Carey, who supports the resolution, expressed his excitement about this on X:

Decentralized Finance brokerage rules unnecessarily hinder innovation in the United States, infringe on the privacy of Americans, and also place an unbearable reporting burden on the IRS during tax season.

Pros and Cons: Political positions diverge

Although the Republican Party and the majority of the encryption industry support the repeal of the rule, some Democratic lawmakers hold a different position. Democratic Congressman Lloyd Doggett stated in March: "If the rule is canceled, it could create a loophole for the wealthy to evade taxes."

However, industry insiders generally believe that Trump will eventually repeal the bill, after all, White House AI and encryption czar David Sacks indicated last month that he would recommend Trump sign a proposal to overturn the law.

) is expected to repeal the US IRS crypto tax regulations! AI crypto czar David Sacks: has advised President Trump to sign (.

Indeed, the resolution was passed by the House Fundraising Committee on February 25, voted on by the House on March 11, and passed in the Senate on March 26.

Trump showcases a crypto-friendly stance, and the industry can finally breathe a sigh of relief.

Blockchain Association )Blockchain Association( CEO Kristin Smith stated in a statement:

Innovators, builders, and developers in the industry can finally breathe a sigh of relief. This IRS rule was like a big hammer, nearly striking the engine of innovation in the United States.

In December of last year, the association, along with the non-profit organization )DeFi Education Fund(, filed a lawsuit against the IRS and the Department of Treasury, accusing the rule of being illegal and constituting "unconstitutional abuse of power."

The passage and signing of this resolution symbolize the Trump administration's friendly attitude towards encryption policy. Not only does it oppose the rule, but its government is also attempting to adjust the organizational structure and regulatory direction of the United States Securities and Exchange Commission )SEC(, which has begun to withdraw several enforcement actions against Crypto Assets operators from the Biden administration era and is engaging in multiple regulatory consultations with the industry.

This article discusses Trump's signing to repeal the controversial tax rules for the IRS regarding DeFi platforms, making it the first effective crypto law in the United States, which first appeared in Chain News ABMedia.