Trump signs resolution to reverse DeFi tax reporting rule
The IRS rule, designed to enforce crypto tax compliance, faced backlash from the DeFi industry due to its technical challenges.
On Thursday, President Donald Trump signed a resolution reversing an IRS rule. The rule would have required certain crypto brokers, including decentralized finance (DeFi) platforms, to report customer transactions to the tax agency.
The rule, scheduled to take effect in 2026, aimed to ensure tax compliance for crypto users but faced backlash from the industry.
The measure, part of the Biden administration’s efforts to strengthen crypto tax enforcement, was criticised for being technically difficult to follow and legally problematic. DeFi platforms do not act as intermediaries or possess user identities, which made the rule unworkable, according to industry leaders.
Lawmakers supporting the repeal argued that the rule hindered innovation, infringed on privacy, and would overload the IRS with unnecessary filings. Trump’s signature reflects his commitment to supporting the crypto industry and fostering a favourable environment for digital assets in the US.
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