In a historic move for the digital asset space, President Donald Trump has officially signed into law a resolution overturning the IRS’s controversial DeFi Broker Rule—an action widely hailed as a major victory for the cryptocurrency industry and its supporters in Congress.
The resolution, H.J.Res.25, spearheaded by Rep. Mike Carey (R-Ohio) and Sen. Ted Cruz (R-Texas), aims to dismantle a late-2024 regulation that had extended the IRS’s definition of a “broker” to include decentralized finance (DeFi) platforms and other non-custodial crypto services.
Under the rule, DeFi interfaces, wallet providers, and even protocol front-ends would have been required to collect personal user data and report crypto transactions using Form 1099—a mandate critics argued was burdensome, invasive, and technologically unrealistic.
Calling the repeal a “landmark legislative achievement,” Rep. Carey emphasized its broader implications for innovation and regulatory sanity: “This is the first cryptocurrency bill ever signed into law and the first tax-related Congressional Review Act of Disapproval to make it to the president’s desk,” Carey said.
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“The rule would have stifled innovation and buried the IRS in compliance it’s not equipped to handle. This repeal allows the IRS to refocus on its core responsibilities to American taxpayers.”
Trump’s signature not only nullifies the IRS rule—it ensures that a similar one cannot be implemented in the future without clear Congressional approval, thanks to provisions under the Congressional Review Act (CRA).
The resolution passed the Senate on March 4, cleared the House on March 11, and received final Senate approval on March 26 before making its way to the Oval Office.
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The White House had already indicated support for the measure, branding the IRS rule a “midnight regulation” rushed through during the waning days of the Biden administration.
This legislative milestone arrives amid a broader regulatory shake-up in Washington that appears increasingly favorable to the crypto industry.
The Securities and Exchange Commission, now under the leadership of acting chair Mark Uyeda, has recently dropped high-profile lawsuits against major players like Coinbase, Gemini, and Kraken.
Meanwhile, the Department of Justice shuttered its National Cryptocurrency Enforcement Team earlier this week, citing strategic shifts.
Perhaps most significantly, Paul Atkins—a longtime SEC commissioner known for his pro-crypto stance—is expected to be confirmed as the agency’s next chair.
His appointment is widely seen as a signal that the SEC may pivot away from its historically aggressive enforcement approach and instead foster a more innovation-friendly environment for blockchain technology.
With the regulatory tide turning and a historic crypto bill now enshrined into law, the future of digital assets in the U.S. looks more optimistic than it has in years.
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