- Trump signs first U.S. crypto law, repealing IRS DeFi broker rule.
- The Senate passed the repeal 70–28 after House approval on March 11.
- New law ends DeFi reporting mandates, easing pressure on developers.
President Donald Trump has officially signed the first crypto-related bill into law, marking a pivotal moment in U.S. digital asset regulation. The new law eliminates a controversial IRS rule that targeted decentralized finance platforms with strict tax reporting obligations.
President Approves Resolution to Repeal IRS DeFi Broker Rule
The resolution passed with broad bipartisan support, receiving a 70–28 vote in the Senate after earlier approval in the House. According to ex-Fox journalist Eleanor Terret, Trump’s signature finalizes the legislative process, making the bill the first formal law involving cryptocurrencies enacted by a U.S. president.
The repealed IRS rule, introduced under the Biden administration, had mandated DeFi platforms to report transaction details and user data. Lawmakers and industry representatives argued the rule was impractical due to the decentralized nature of such platforms. The bill gained traction after lawmakers expressed concerns that the IRS regulation could stifle innovation and technological advancement.
Senator Ted Cruz led the initiative in the Senate, calling the IRS policy an obstacle to financial transformation. Congressional action followed procedural rules requiring tax-related legislation to originate in the House. After passing there on March 11, the final Senate vote on March 26 secured the measure’s passage.
White House crypto advisor David Sacks confirmed Trump’s approval of the repeal. Sacks stated the administration wants to safeguard decentralized protocols from excessive oversight that could hinder progress in the sector.
Supporters believe this legislative decision establishes a foundation for more balanced policies in the crypto industry. Key players, including advocacy groups such as the DeFi Education Fund, endorsed the repeal as a practical step forward.
Shift in Federal Approach to Decentralized Finance
The IRS broker rule required DeFi platforms to disclose details such as gross proceeds and identifying information from user transactions. Critics said such mandates were difficult to enforce due to the lack of centralized control in DeFi networks.
Industry participants also highlighted the risks of applying conventional compliance models to decentralized systems. They argued such regulations could lead to decreased development and participation in U.S.-based blockchain projects.
By removing these obligations, the law allows DeFi developers and operators to focus on building secure, permissionless systems without fear of regulatory penalties. It also suggests a shift in how federal authorities view emerging financial technologies.
Crypto Community and Market Reaction
The bill’s passage was met with positive reactions across the crypto landscape. Stakeholders view the repeal as a sign of growing legislative awareness of blockchain’s operational realities. Shiba Inu’s marketing lead referred to the development as beneficial to industry momentum. The sentiment was echoed by market analysts who expect the decision to impact long-term regulatory trends.
With Trump’s signature, the federal government signals a new phase in its relationship with digital finance. Observers say this could prompt future efforts to develop frameworks that support decentralized innovation.
