Donald Trump has become the first US president to sign a cryptocurrency-specific bill into law, officially overturning a controversial IRS rule introduced during the final weeks of Joe Biden’s presidency.
The bill, known as H.J.Res.25, invalidates a regulation that would have required decentralised finance (DeFi) platforms to report user data in the same way as traditional brokers.
The repealed rule, titled “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales,” had expanded the definition of a “broker” to include DeFi protocols and other non-custodial services.
It required platforms to report gross proceeds and collect personal taxpayer information, such as identities and transaction histories, even if they lacked the infrastructure or ability to do so.
Originally announced in 2023 and finalised in early 2024, the policy was widely criticised across the crypto sector and by lawmakers from both sides of the aisle.
After clearing the Senate on 4 March and the House the following week, a final Senate vote on 26 March was needed before the bill reached the president’s desk.
Crypto firms and advocacy groups reacted strongly when the IRS rule was introduced, warning that it would severely disrupt DeFi innovation in the United States.
DeFi protocols operate using self-executing code and do not serve as intermediaries, making compliance with traditional tax reporting requirements impossible, critics argued.
Supporters of the repeal said the rule would have imposed excessive burdens on the industry and the IRS.
Representative Mike Carey, a Republican from Ohio who sponsored the bill, said,
"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."
Trump’s decision to sign the bill is aligned with his broader deregulatory approach to digital assets.
The White House had already backed the measure in March, describing the Biden-era rule as harmful to innovation and privacy.
David Sacks, who serves as the White House's AI and crypto policy lead, described the IRS rule as a “midnight regulation” from the previous administration.
He said it “would stifle American innovation and raise privacy concerns over the sharing of taxpayers’ personal information, while imposing an unprecedented compliance burden on American DeFi companies.”
The move has been widely welcomed by leaders within the crypto space.
Amanda Tuminelli, Executive Director of the DeFi Education Fund, said in a statement, “Digital asset regulatory history was made in the U.S. today,” calling Trump’s signature a “critical signal change” for the industry.
With the rule now formally void, the IRS is barred under the Congressional Review Act from introducing a similar rule without further congressional authorisation.
This limits the agency’s ability to reimpose reporting mandates on DeFi platforms unless lawmakers explicitly approve a new version.
Trump has embraced digital assets as part of his 2024 campaign and current term.
He has positioned himself as a pro-crypto president, attracting support from the industry.
In his first week back in office, Trump created a dedicated cryptocurrency working group and later signed an executive order establishing a federal reserve of bitcoin.
In an official statement, Representative Carey praised the president for taking action, saying,
“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.”
He also thanked David Sacks “for his leadership in supporting America’s continued place as the global leader in the emerging crypto industry.”
Ant Group has launched "Zhixiaobao," an AI-powered life assistant app that integrates various services like payments, ordering, and booking through Alipay. This move reflects Ant’s shift towards AI-driven solutions after facing regulatory challenges and a significant fine in 2023.
WeatherlyMagic Eden has launched two distinct domains, magiceden.us for US users and magiceden.io for international users, to cater to regional needs and regulations. Despite a market downturn, Magic Eden remains a leading NFT marketplace with a $122.47 million trading volume in August 2024, holding a 36.7% market share.
AnaisWith deepfakes rising in generative AI, YouTube plans to introduce two tools to protect creators' intellectual property. While the details of these tools are promising, the platform has yet to disclose their official release dates.
CatherineAt the 2024 Shanghai Bund Conference, Ant Financial announced its business progress and strategic layout for the first time after its independence. Its chief scientist Yan Ying said that the Web3 industry has entered a new stage of asset integration.
AlexTRON's Dave Uhryniak highlights the cultural and artistic impact of memecoins at Korea Blockchain Week, introducing SunPump as a new platform for creating and trading meme coins.
MiyukiMichael Smith faces federal charges for defrauding streaming platforms by using AI to create fake songs and bots to generate billions of streams, leading to $10 million in illicit royalties. His scheme involved setting up thousands of fake accounts and using custom software to stream his music, making it appear as though many unique listeners were tuning in.
AnaisAlexAlexChatGPT's latest macOS update finally brings the "Memory" feature to Europe and South Korea, allowing users to save preferences and personal information for more personalised responses. By remembering details like preferred formats and past interactions, could this elevate personalisation even further?
CatherineElon Musk plans to establish a human city on Mars within 20 years, starting with uncrewed missions in 2026 and a crewed mission two years later. But will this interplanetary dream become reality or remain an unattainable utopia?
Kikyo