In a significant step for crypto regulation, President Donald Trump has officially reversed an IRS rule targeting DeFi platforms, marking the first successful pro-crypto legislation passed by the U.S. Congress. The move has been hailed as a watershed moment for decentralised finance, potentially reshaping the future of crypto regulation in the United States.
IRS Rule Struck Down by Congress
The now-voided IRS regulation, introduced during the final days of former President Joe Biden’s administration, sought to classify DeFi platforms as brokers, forcing them to track and report user activity for tax purposes.
Critics argued the rule would stifle innovation, violate user privacy, and place an unmanageable burden on the IRS during tax season. Representative Mike Carey, who led the effort to overturn it, called the rule “a misguided attempt that hindered American innovation.”
Congress used its powers under the Congressional Review Act to strike down the rule and block the IRS from issuing similar mandates in the future.
A Bipartisan Breakthrough for Crypto
The resolution’s passage in both the Senate and House of Representatives with bipartisan support highlights growing momentum behind crypto-friendly legislation in the U.S. It signals a rare consensus on digital assets in a politically divided Congress.
This development represents the first pro-crypto measure to clear both chambers of Congress and receive presidential approval, setting a powerful precedent for future legislation.
DeFi Industry Celebrates Victory
The crypto community, particularly within the DeFi space, has applauded the decision. The DeFi Education Fund described it as a “watershed moment” and noted that this is the first time U.S. law has directly addressed crypto through formal legislation.
With the IRS rule overturned, DeFi platforms are no longer required to act as traditional financial intermediaries, preserving the core decentralised ethos of the space.
What Comes Next: Stablecoin Legislation in Focus
Following this legislative win, stablecoin regulation has become the next major target for lawmakers. Similar bills have already passed through key committees in both the House and Senate and now await floor votes.
President Trump has called for a comprehensive stablecoin bill to reach his desk by August, and lawmakers remain optimistic about the timeline. A unified bill would aim to regulate stablecoin issuers, enforce reserves, and bring more clarity to the market structure of crypto transactions.
