U.S. Passes First Crypto Law: Trump Repeals DeFi Broker Rule in Win for Blockchain Innovation

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For the first time, the U.S. has officially passed a pro-crypto law — and it’s a pretty big deal. In a big win for the crypto community, President Donald Trump has officially signed off on the repeal of the controversial IRS “DeFi Broker Rule.” This marks the first time a crypto-related bill has ever become law in the United States — a significant milestone that reflects the changing attitude toward digital assets at the federal level. 

Crypto Czar David Sacks credited Senators Ted Cruz, Mike Carey, and Bryan Steil for pushing the resolution through Congress.

What Was the DeFi Broker Rule?

Originally introduced during the Biden administration, the DeFi Broker Rule was set to take effect in 2027. It aimed to expand IRS reporting requirements by forcing decentralized finance (DeFi) platforms to report details about crypto transactions, including the gross proceeds and user information, similar to traditional brokers reporting stock trades.

Supporters of the rule claimed it would help prevent tax evasion, especially among the wealthy. However, critics said it would impose impossible demands on decentralized systems that don’t have centralized operators or user databases.

Why It Was Repealed

Trump’s repeal of the rule came after heavy criticism from lawmakers and crypto advocates who believed it would stifle innovation and overwhelm the IRS with data it’s not equipped to process. Representative Mike Carey, one of the key backers, said the rule would have hurt everyday Americans’ privacy while creating chaos during tax season.

Crypto lobby groups like the Blockchain Association even filed lawsuits calling the rule an “unconstitutional overreach.” Their CEO, Kristin Smith, celebrated the repeal, stating that crypto innovators could “breathe again” and that the rule would have destroyed the U.S. crypto industry.

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How It Happened

The resolution to repeal the rule moved quickly through Congress. It passed the House in March and the Senate shortly after. Trump’s signature on April 10 officially turned it into law. According to reports, Trump was expected to support the move, especially after his crypto advisor David Sacks confirmed the President’s favorable stance toward crypto policies.

The repeal of the DeFi Broker Rule sends a strong message that the U.S. may be shifting toward more crypto-friendly regulations. Under Trump’s administration, the SEC has already begun to roll back aggressive enforcement actions taken under Gary Gensler, signaling a new approach that leans more toward innovation than regulation.

Overall, this could mark the beginning of a much-needed regulatory reset for the crypto industry.