First-Ever Crypto Bill Becomes Law: Trump Smashes IRS Rule Targeting Brokers

First-Ever Crypto Bill Becomes Law: Trump Dismantles Biden’s Midnight Crypto Rule

A joint resolution to repeal the Internal Revenue Service rule was presented earlier this year by Republicans Rep. Mike Carey of Ohio and Sen. Ted Cruz of Texas. The rule imposed obligations on custodial brokers with regard to gathering and informing the tax authority of user data.

Lawmaker Carey reported that President Donald Trump approved a resolution to remove a contentious crypto tax rule that was finalized near the conclusion of the Biden administration. As was to be expected, Trump signed the resolution Thursday after the White House, in the closing days of the previous administration, indicated that it supported the legislation and referred to it as a midnight rule. It was the first cryptocurrency bill ever passed into law, according to Carey.

By repealing this misguided rule, President Trump and Congress have given the IRS an opportunity to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles,

Carey

Bipartisan Support Helps Overturn IRS Rule Targeting DeFi Platforms

Because the rule was linked to a budgetary clause, it was overturned by the Senate in March, followed by the House, and then returned to the Senate. Although the majority of the support for the votes came from Republicans, Democrats did support them, including Senate Minority Leader Chuck Schumer. According to a statement from Amanda Tuminelli, Executive Director of the DeFi Education Fund, Trump’s signing formally ends the IRS’s broker rulemaking.

The DeFi Education Fund commends all members of Congress who supported this resolution, recognizing the importance of protecting software developers and promoting the development of decentralized technologies. President Trump’s signature is a critical signal change for the crypto industry: the United States has embraced a sensible, forward-thinking approach to digital assets.

Tuminelli

It targeted entities that host the major website accessing a decentralized protocol, not the protocol itself, the U.S. Treasury Department said. The department added that the finalized rule applies to front-end service providers that deal directly with users.

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