Trump Makes History, Signs First-Ever Crypto Bill Into Law to Kill IRS DeFi Rule

In Brief:

Trump repeals controversial IRS DeFi broker rule in first crypto-related legislation ever signed by a U.S. president.

The move is hailed by industry leaders as a major win for privacy and American innovation.

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In a landmark moment for the crypto industry, President Donald Trump signed into law a resolution that formally repeals the IRS' DeFi broker rule—marking both his first crypto-related legislation and the first digital asset bill signed by any U.S. president.

The repealed rule, introduced under the Biden administration in 2023, would have required decentralized finance (DeFi) platforms to collect and report user tax data, much like traditional financial brokers. Critics argued that the rule was technically unfeasible for most DeFi protocols and posed serious privacy risks for users.

Support for the repeal crossed party lines. Lawmakers from both the House and Senate rallied behind the resolution, reflecting growing bipartisan recognition of the need to foster innovation and protect user privacy in the digital asset space.

U.S. Representative Mike Carey (R-Ohio), present at the signing ceremony, called the repeal a “re-centering of IRS priorities.” He criticized the original rule for “overwhelming the agency with unmanageable compliance burdens.”

The crypto industry responded swiftly and positively. Amanda Tuminelli of the DeFi Education Fund said the signing marked a “critical signal change” for digital assets, positioning the United States as open to responsible innovation.

White House AI and crypto adviser David Sacks also praised the move, calling the IRS regulation a “midnight rule” of the previous administration and warning it would have suffocated American DeFi startups.

This development may signal a broader shift in U.S. crypto policy. It also underscores the Trump administration’s increasingly pro-innovation stance in contrast to the regulatory clampdowns of recent years.

With the 2025 election cycle already charged with economic and technological stakes, this milestone could prove to be a defining pivot in how Washington approaches decentralized finance and Web3.

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