Trump Revokes IRS Rule on DeFi
President of the United States, Donald Trump, recently signed a law that repealed a controversial regulation from the Internal Revenue Service (IRS).
The regulation previously required decentralized finance (DeFi) platforms to report their users’ transactions to tax authorities.
This move is seen as a major win for the digital asset industry and marks Trump’s commitment to supporting the growth of the crypto sector in the United States.
Background of the IRS Regulation
Quoting information from Coinvestasi media, at the end of President Joe Biden’s term, the IRS issued a regulation that expanded the definition of “broker” to include DeFi platforms.
This regulation required DeFi platforms to report users’ transaction details, including personal information and transaction amounts, to the IRS.
The goal was to improve tax compliance in the crypto sector, which is believed to have a low tax reporting rate.
Criticism of the Regulation
Many in the crypto industry criticized the regulation as unrealistic and burdensome.
DeFi platforms, which operate without intermediaries and do not store user data, were seen as lacking the technical capacity to meet the reporting requirements.
In addition, the regulation was feared to stifle innovation and push crypto companies to move to more crypto-friendly jurisdictions.
The Repeal Process
Using the Congressional Review Act mechanism, the US Congress—dominated by the Republican Party—passed a resolution to repeal the IRS regulation.
The resolution received significant bipartisan support in both legislative chambers.
After being approved by Congress, President Trump signed the law, officially repealing the controversial IRS regulation.
Impact on the Crypto Industry
The repeal of this regulation was warmly welcomed by the crypto community. It is seen as a positive signal that the US government, under Trump’s leadership, is committed to creating an environment that supports growth and innovation in the digital asset space.
However, some tax experts warned that without adequate reporting mechanisms, the risk of tax evasion in the crypto sector could increase.
Trump’s Commitment to the Crypto Industry
Since his presidential campaign, Trump has shown support for the crypto industry.
He promised to ease regulations, appoint pro-crypto officials, and even proposed the creation of a national strategic Bitcoin reserve.
These moves reflect Trump’s shift from being skeptical of crypto to becoming more open and supportive.
Conclusion
The repeal of the IRS regulation by President Trump marks an important step toward a more crypto-friendly policy direction in the United States.
While challenges remain, particularly regarding tax compliance, this move brings new hope for growth and innovation in the digital asset sector.
