- President Trump has signed a resolution that repeals a DeFi reporting rule to the IRS.
- The repealed rule would have required decentralized finance platforms to report crypto sales and transaction information.
- This action was anticipated, as Trump’s AI and crypto advisor David Sacks had previously indicated the president’s support for eliminating the measure.
President Donald Trump signed a joint Congressional resolution on April 10 that overturns a rule requiring decentralized finance (DeFi) protocols to report to the Internal Revenue Service (IRS). The resolution effectively eliminates a Biden administration regulation that would have mandated DeFi platforms to disclose information about cryptocurrency transactions to the U.S. tax authority.
The now-repealed rule specifically targeted DeFi platforms such as decentralized exchanges, requiring them to file reports on gross proceeds from cryptocurrency sales and provide information about the individuals participating in these transactions. This would have significantly increased compliance requirements for decentralized platforms that typically operate without central control.
Expected Decision Follows Previous Signals
Trump’s signing of the bill aligned with earlier expectations from his administration. In March, David Sacks, who serves as the White House AI and cryptocurrency czar, had publicly stated that the president would support eliminating the measure. This decision represents a significant shift in regulatory approach to the decentralized finance sector.
The Congressional resolution reached the president’s desk after passing through both houses of Congress, reflecting bipartisan concerns about the scope and implementation of the reporting requirements for decentralized platforms.
Implications for DeFi and Crypto Industry
The repeal marks a notable shift in the regulatory landscape for decentralized finance, potentially easing compliance burdens that would have been imposed on DeFi protocols. The original rule was part of broader efforts by the Biden administration to increase tax reporting requirements in the cryptocurrency sector.
Industry observers have been closely watching this development, as reporting requirements significantly impact how decentralized platforms operate and the level of information they must collect from users – a requirement that often conflicts with the core principles of decentralization.
As indicated in the original reporting, this story continues to develop, with additional information expected as the implications of this regulatory change become clearer for the cryptocurrency industry and tax authorities.
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