{"id":58517,"date":"2025-04-11T09:21:58","date_gmt":"2025-04-11T09:21:58","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=58517"},"modified":"2025-04-11T09:21:58","modified_gmt":"2025-04-11T09:21:58","slug":"trump-repeals-irs-rule-that-targeted-defi-platforms-in-tax-reporting-crackdown","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=58517","title":{"rendered":"Trump Repeals IRS Rule That Targeted DeFi Platforms in Tax Reporting Crackdown"},"content":{"rendered":"

At least for now, the crypto industry just scored a major win with this new update related to IRS crypto reporting. <\/span>On April 10, 2025, President Donald Trump signed off on a bill that officially <\/span>killed<\/span> an IRS rule requiring decentralized finance (DeFi) platforms to report user transaction data to the government. This rule, finalized late last year under the Biden administration, had expanded the definition of a \u201cbroker\u201d to include traditional crypto exchanges and<\/span>\u00a0DeFi protocols, even those<\/span>\u00a0that run on smart contracts without a single employee.<\/span><\/p>\n

The rule <\/span>originally<\/span> stemmed from the 2021 Infrastructure Investment and Jobs Act, which aimed to crack down on crypto tax evasion. <\/span>Lawmakers figured the IRS should know if you\u2019re making gains in DeFi<\/span>.<\/span> But the problem? DeFi protocols don\u2019t work like centralized exchanges. They don\u2019t have KYC forms or customer service desks. There\u2019s no easy way for them to report user data, even if they wanted to.<\/span><\/p>\n

Legislative Response and Repeal To Trump Tax Shake-Up<\/span><\/strong><\/h2>\n

Fast forward to 2025, and the backlash hit a boiling point. Industry leaders, developers, and lawmakers alike called the rule unworkable. Enter the Congressional Review Act, a rarely used tool that lets Congress reverse newly finalized regulations with a simple majority vote.<\/span><\/p>\n

TRUMP TO SIGN FIRST-EVER CRYPTO BILL\u2014DEFI BROKER RULE IS DEAD<\/p>\n

The Senate just crushed the IRS’s DeFi surveillance rule 70-28 after the House already demolished it 292-132, handing crypto developers a massive win against government overreach.<\/p>\n

Critics celebrated the death of\u2026 https:\/\/t.co\/6crwWO0ocq<\/a> pic.twitter.com\/tRvlJglhkJ<\/a><\/p>\n

\u2014 Mario Nawfal (@MarioNawfal) April 11, 2025<\/a><\/p>\n\n

Republicansled the charge<\/a>, with Rep. Mike Carey (R-Ohio) and Sen. Ted Cruz (R-Texas) at the forefront. Their argument? The rule was overly broad, poorly thought out, and risked crushing innovation in a sector the U.S. should be leading\u2014not regulating into oblivion.<\/span><\/p>\n

The bill breezed through both chambers of Congress and landed on Trump\u2019s desk, where he wasted no time signing it. The move marks the first piece of crypto-related legislation enacted during his second term.<\/span><\/p>\n

What Do Trump Tax Changes Mean For the Crypto Industry?<\/span><\/strong><\/h2>\n

Naturally, the crypto world is breathing a little easier. For DeFi developers, this means they won\u2019t <\/span>be expected<\/span> to do the impossible, like reporting on users they don\u2019t control or even know. The repeal removes a major regulatory headache and signals that the government might finally be trying to understand how decentralized systems <\/span>actually<\/span> function.<\/span><\/p>\n

That said, it\u2019s not all champagne and memes. Some experts worry the repeal leaves a gaping hole in tax enforcement. Without <\/span>clear<\/span> reporting, the IRS will have a tougher time tracking gains from DeFi activity. And while that might sound like a win for privacy advocates, it raises long-term questions about whether the space can grow sustainably without accountability.<\/span><\/p>\n

IRS Crypto Reporting in 2025 and Beyond?<\/span><\/strong><\/h2>\n

This<\/span> isn\u2019t happening in isolation. The Trump administration has been moving fast on crypto policy. In just a few short months, Trump has signed an executive order to create a national Bitcoin reserve and launched a working group focused on rewriting the federal approach to digital assets.<\/span><\/p>\n

The message is clear: this White House wants a hands-off, pro-innovation stance on crypto. However, whether that leads to smarter regulation or just less remains to be seen.<\/span><\/p>\n

In the meantime, DeFi gets to keep building. The question <\/span>is: can the space self-regulate before another wave of rules comes crashing back?<\/span><\/p>\n

DISCOVER:\u00a0<\/span>20+ Next Crypto to Explode in 2025\u00a0<\/span><\/a><\/strong><\/p>\n

Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/span><\/a><\/strong><\/p>\n

\n

Key Takeaways<\/h3>\n

President Trump repealed the IRS rule that forced DeFi platforms to report user transactions, scrapping a major Biden-era regulation. <\/p>\n

The original rule labeled DeFi protocols as \u201cbrokers,\u201d despite their lack of centralized control or user data. <\/p>\n

Crypto industry leaders and lawmakers called the rule unworkable, leading to its repeal via the Congressional Review Act. <\/p>\n

The move signals a shift toward pro-innovation crypto policy under Trump\u2019s second term. <\/p>\n

While developers celebrate, some experts warn the repeal weakens tax enforcement and leaves a regulatory gap. <\/p><\/div>\n

The post Trump Repeals IRS Rule That Targeted DeFi Platforms in Tax Reporting Crackdown<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

At least for now, the crypto industry just scored a major win with this new update related to IRS crypto reporting. On April 10, 2025, President Donald Trump signed off on a bill that officially killed an IRS rule requiring decentralized finance (DeFi) platforms to report user transaction data to the government. This rule, finalized […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-58517","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/58517"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58517"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/58517\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}