In a milestone moment for the digital asset industry, President Donald Trump has officially signed a resolution repealing a controversial Internal Revenue Service (IRS) rule that sought to classify decentralized finance (DeFi) platforms as brokers. The decision not only removes a significant regulatory burden from the DeFi ecosystem but also marks the first successful piece of pro-crypto legislation to clear both chambers of Congress.
The repealed rule—introduced during the final months of the Biden administration—would have required DeFi protocols to report user transactions as if they were traditional financial intermediaries. Critics from across the crypto sector argued the rule was fundamentally incompatible with decentralized platforms, which often lack central oversight and user-identification systems.
Rep. Mike Carey (R-Ohio), who championed the resolution, confirmed the repeal on Thursday and emphasized that the Congressional Review Act prohibits the IRS from introducing similar regulations in the future. The move, passed with bipartisan support, sends a clear message: lawmakers are becoming increasingly receptive to fostering innovation within the U.S. crypto economy.
“The 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’t have the infrastructure to handle during tax season,” Rep. Carey said.
“By repealing this misguided rule, President Trump and Congress have given the IRS an opportunity to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles.”
Though narrow in scope, the rule’s reversal sets an important precedent for digital asset policy. It signals a shift away from punitive regulatory frameworks and toward more deliberate, innovation-friendly rulemaking—especially under a Trump administration that has made digital asset growth a cornerstone of its economic agenda.
Congress Eyes Stablecoin Law Next
The rollback of the IRS’s DeFi broker rule wasn’t just a policy victory for decentralized platforms—it’s a turning point in Washington’s broader crypto trajectory. With bipartisan momentum now firmly established, lawmakers are turning their attention to the next major item on the digital asset agenda: stablecoin regulation.
Both the House and Senate have advanced draft legislation aimed at establishing a clear regulatory framework for stablecoin issuers, reserve requirements, and transactional oversight. These bills are expected to head to floor votes in the coming weeks, after which both chambers will work to reconcile their proposals into a final unified version.
President Trump has voiced strong support for the stablecoin initiative, urging lawmakers to deliver a comprehensive bill to his desk by August. Congressional leaders involved in the process have echoed that timeline, suggesting that the U.S. could have a federal stablecoin law in place before the end of summer—an achievement that would provide much-needed clarity for both developers and investors.
The repeal of the IRS’s DeFi rule reflects a growing legislative appetite for regulatory clarity over enforcement-heavy crackdowns. While the overturned rule itself was narrow, its removal is emblematic of a broader shift toward embracing blockchain innovation rather than suppressing it. If current momentum holds, the coming months could prove pivotal in defining the long-term regulatory framework for digital assets in the U.S.
Quick Facts
- President Trump signed a resolution repealing an IRS rule that classified DeFi platforms as brokers.
- The repeal earned bipartisan support, underscoring a legislative shift toward crypto-friendly policy.
- The decision removes compliance burdens from DeFi protocols and encourages broader innovation.
- Lawmakers are now prioritizing federal stablecoin legislation, aiming for passage by late summer.
