Trump cancels the rules for decentralized finance intermediaries issued by the IRS, reflecting the cryptocurrency policy adopted by Biden.
Trump signed a law that cancels the rules for decentralized finance intermediaries issued by the IRS, which were enacted during Biden's administration.
Decentralized finance platforms were required to report user data, just like traditional brokers.
President Donald Trump signed a law that cancels the rules issued by the IRS during Biden's administration, which expanded the scope of tax reporting requirements to include decentralized finance (DeFi) platforms. The IRS rule, which was finalized in late 2024, aims to treat DeFi operators as brokers and force them to report user transaction data. Although it was scheduled to take effect in 2026, critics warned that it would harm cryptocurrency innovation and burden small developers.
Both houses of Congress approved the measure earlier this year under the Congressional Review Act. Legislators argued that the IRS rule imposed unrealistic technical requirements on DeFi platforms. These platforms, unlike centralized trading platforms like Coinbase or Kraken, do not retain user identities or custody assets.