President Donald Trump has signed a resolution that rescinds an Internal Revenue Service (IRS) rule aimed at treating decentralized finance (DeFi) platforms as brokers. This rule, established during the final days of the Biden administration, would have forced DeFi projects to track and report user activity, creating significant operational hurdles for them.
The congressional effort to eliminate this rule received considerable bipartisan support, showcasing a united front in favor of pro-crypto policies within U.S. Congress. Representative Mike Carey, a Republican from Ohio who supported the initiative, confirmed the resolution’s passage. The use of the Congressional Review Act allowed lawmakers to not only repeal the IRS regulation but also prevent the agency from implementing a similar rule in the future.
This development is noteworthy as it marks the first time that Congress has successfully advanced a significant pro-crypto measure. Both the Senate and House of Representatives voted overwhelmingly in favor of overturning the IRS’s decree, reinforcing a growing recognition of the cryptocurrency sector’s presence and influence.
Looking ahead, other pressing matters for Congress include legislation regulating stablecoin issuers, with bills already passing through relevant committees in both chambers. Trump has indicated a desire to see a stablecoin bill on his desk by August, and discussions around merging different legislative approaches are underway.
The removal of the IRS DeFi rule alleviates immediate regulatory concerns for DeFi platforms, paving the way for further legislative advancements in the cryptocurrency landscape.
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