The IRS’s “DeFi Broker Rule” was repealed by President Donald Trump through a landmark decision on April 10, 2025. The final days of the Biden administration saw the introduction of a regulation that designated decentralized finance (DeFi) platforms as brokers to enforce tax reporting rules similar to those imposed on centralized exchanges. Starting in 2027, the rule would have mandated DeFi platforms to submit gross proceeds from crypto transactions and compile taxpayer data, including identities and transaction histories.
The crypto industry labeled the rule impractical because DeFi platforms operate without intermediaries and, therefore, lack the user data required for compliance. Representative Mike Carey and Senator Ted Cruz successfully repealed legislation preventing the IRS from establishing similar regulations without new congressional authorization and marking the first crypto-related bill signed into law.
SEC Retreats from Crypto Enforcement
The Securities and Exchange Commission (SEC) reduced its enforcement actions against cryptocurrency firms throughout the Trump administration. The SEC has dropped several major lawsuits against top cryptocurrency firms such as Coinbase, Kraken, Ripple, and Helium Network. This change represents a strategic move to support the growth of the crypto industry while minimizing legal ambiguities for these firms. According to Commissioner Hester Peirce the SEC’s recalibration will give companies permission to freely experiment and develop innovative products.
Pro-Crypto Leadership and Task Force
The SEC has established a special Crypto Task Force under Commissioner Hester Peirce to deliver definitive regulatory guidance. The Task Force is dedicated to defining how federal securities laws apply to crypto assets while creating appropriate disclosure frameworks and establishing feasible registration options for crypto businesses. The Task Force works with industry stakeholders through roundtable discussions and public consultations to establish regulations that foster innovation and protect investor interests. What does this mean? The cancellation of the IRS DeFi Broker Rule, coupled with the SEC’s diminishing enforcement approach and the creation of a pro-crypto task force, represent significant changes in U.S. regulatory policies. The recent developments indicate better conditions for digital asset innovation while establishing a more defined structure for accountants and industry stakeholders in the dynamic crypto sector.
Author: Mohammed Bari | [email protected]
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