Trump Makes History with First U.S. Crypto Law
President Donald Trump just became the first U.S. president to sign a crypto-related bill into law, eliminating the IRS’s controversial DeFi broker rule. The rule, introduced in 2023 under President Biden, would’ve forced decentralized finance (DeFi) platforms to collect and report taxpayer data like traditional brokers—something critics argued was impossible and damaging to innovation.
“This bill is a clear signal that the U.S. is finally taking a pro-crypto turn,” said Amanda Tuminelli of the DeFi Education Fund.
What the IRS Rule Tried to Do — And Why It’s Gone
📉 The DeFi Broker Rule (Biden-era):
- Required DeFi protocols to report tax info on users.
- Treated decentralized platforms like centralized brokers.
- Raised serious privacy concerns.
- Was technically unworkable for automated smart contract platforms.
Critics warned it would cripple DeFi in the U.S. by forcing developers into compliance regimes they couldn’t meet. Rep. Mike Carey (R-Ohio), who attended the bill signing, said the IRS should “focus on its existing duties” rather than policing emerging tech.
Bipartisan Support + Industry Cheers
The repeal had rare bipartisan backing in both the House and Senate, showing growing frustration with legacy anti-crypto policies from the previous administration. David Sacks, Trump’s AI and crypto czar, called the IRS rule a “midnight regulation” that would have:
- Stifled innovation.
- Overloaded the IRS.
- Violated user privacy.
Crypto policy groups and DeFi advocates applauded the repeal, hailing it as a watershed moment for the U.S. crypto scene.
Why This Is a Big Deal
✅ It’s the first crypto law ever signed by a U.S. president.
âś… Shows clear federal support for DeFi innovation.
âś… Marks a shift from regulatory hostility to pro-innovation clarity.
Industry insiders now expect a friendlier legislative environment under Trump 2.0, potentially paving the way for broader crypto reform—including stablecoins, token classifications, and CBDC opposition.
“Digital asset regulatory history was made today,” said Tuminelli. “The U.S. has embraced a sensible, forward-thinking approach to crypto.”
