In a groundbreaking move that signals a shift in U.S. policy toward digital assets, Donald Trump has officially signed into law the first crypto-specific legislation in American history. This historic step, finalized on April 10, 2025, repeals a controversial tax rule introduced by the IRS that had targeted decentralized finance (DeFi) platforms.
The original regulation, introduced during the closing days of the Biden administration, classified DeFi platforms as brokers. This designation required them to collect personal user data and report it directly to the IRS. Critics across the crypto space quickly pointed out the core issue: decentralized platforms, by nature, lack intermediaries and thus cannot fulfill the same compliance responsibilities as traditional financial institutions. The rule was seen as not only technically unworkable, but also a threat to privacy and innovation.
The controversial rule stemmed from the 2021 Infrastructure Investment and Jobs Act, which included measures to tighten crypto tax reporting. While intended to curb tax evasion, many industry leaders and lawmakers argued that the approach was overly aggressive and ill-suited for the rapidly evolving DeFi landscape. Instead of fostering transparency, they said, it risked stifling progress and driving projects offshore.
The repeal came through the Congressional Review Act, which allows Congress to overturn recently adopted federal regulations by simple majority. The House and Senate both voted to reverse the IRS rule, and the Trump administration, eager to position itself as pro-innovation, welcomed the legislation. For many in the crypto industry, this was not just a win—it was a turning point.
By signing the bill, Trump has made it clear that his administration sees digital asset innovation as a strategic advantage worth defending. While his stance contrasts sharply with the more stringent frameworks developing in Europe and among OECD nations, Trump’s allies argue that easing regulatory burdens is key to keeping American crypto development competitive. As one administration official put it, “This is about making sure the next wave of fintech doesn’t leave the U.S. behind.”
Of course, not everyone is on board. Critics, including several Democratic lawmakers, have warned that the repeal could weaken the IRS’s ability to enforce tax compliance. They argue that without adequate oversight, the U.S. risks opening the door to increased tax evasion, especially when other global jurisdictions are moving toward tighter controls.
Still, the prevailing sentiment in the crypto community is one of cautious optimism. The repeal relieves a significant pressure point for DeFi platforms and may signal the beginning of a broader legislative agenda more aligned with the needs of Web3 builders. Already, proposals are advancing through Congress to regulate stablecoin issuers and define market standards for digital asset transactions. The goal is to eventually consolidate these efforts into a cohesive framework that supports innovation while maintaining financial integrity.
As the dust settles, one thing is certain: this moment marks a significant recalibration in U.S. crypto policy. With Trump’s signature, the door is now open for a new era of digital finance—one that prioritizes innovation, privacy, and a distinctly American approach to the future of money.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist