- Trump cancelled an IRS rule that didn’t work well for DeFi.
- DeFi platforms no longer have to report user data like regular exchanges.
- This decision helps protect innovation and shows strong support for crypto in the U.S.
On April 10, 2025, President Donald Trump officially cancelled a rule from the IRS that would have treated decentralised finance (DeFi) platforms like regular crypto exchanges. This rule could have caused big problems for the DeFi world, but now it’s been scrapped — and the crypto industry sees it as a big win.
What Was the IRS Rule About?
The IRS had created a rule that tried to group DeFi platforms under the same category as centralised exchanges, like Coinbase. That would mean DeFi apps would have to track and report user data to the IRS, just like a bank or broker does. But the problem is that DeFi platforms don’t collect user info in the same way since they’re not run by companies — they’re powered by code on the blockchain. Trying to apply these rules to DeFi just didn’t make sense.
Why the Crypto Industry Pushed Back
Crypto companies and users said the rule was unfair and almost impossible to follow. DeFi platforms simply don’t have the tools to track who is using them or what they’re doing because everything is anonymous and decentralised. The rule would have slowed down DeFi innovation and scared away developers and users from building or using these tools in the U.S.
How the Rule Got Cancelled
Congress used a law called the Congressional Review Act to vote on cancelling the rule. First, the House of Representatives and the Senate both voted to overturn it. Then, it went to President Trump’s desk — and he signed off on it. Now, the rule is officially gone. Lawmakers who supported the decision said it would protect innovation and privacy in the crypto space.
What This Means for DeFi and Crypto
Now that this IRS rule is no longer in place, DeFi platforms don’t have to worry about trying to report data they don’t even collect. That means they can keep operating as they always have — fast, permissionless, and open to anyone. This also shows that the current U.S. government is taking a more friendly approach to crypto compared to previous years.
Trump’s Support for Crypto
President Trump has made it clear he wants to support crypto growth in the U.S. He has promised to make the country a leader in blockchain innovation. He also started a crypto task force and even talked about creating a federal bitcoin reserve. By cancelling the IRS rule, he’s showing that he’s serious about creating a more crypto-friendly environment.
Conclusion
This move is a big step forward for the DeFi community. By removing a rule that didn’t fit with how DeFi actually works, the government has helped keep the door open for more growth and innovation in the space. It’s a clear signal that the U.S. is ready to work with, not against, the future of finance.
