In a landmark moment for the crypto industry, U.S. President Donald Trump has signed a resolution overturning an IRS regulation that targeted decentralized finance (DeFi) platforms. This marks the first successful pro-crypto legislation to clear Congress, signalling a potential shift in U.S. policy towards digital assets.

IRS Rule Revoked: What It Means for DeFi

The now-defunct rule, introduced during former President Joe Biden’s administration, required DeFi platforms to act as brokers, tracking and reporting user activities to the IRS. Critics argued that the regulation stifled innovation, compromised user privacy, and placed an unsustainable burden on the IRS during tax season.

With the use of the Congressional Review Act, lawmakers effectively nullified the regulation, preventing similar measures in the future. Ohio Representative Mike Carey, a leading voice behind the resolution, hailed the move as a victory for innovation and privacy.

Bipartisan Support Highlights Crypto’s Growing Influence

The resolution garnered bipartisan support in both the House and Senate, reflecting the crypto sector’s increasing clout in U.S. policymaking. While the rule’s reversal addressed a specific issue, it demonstrated Congress’s willingness to act in favour of the crypto industry.

The DeFi Education Fund, which backed the effort, called the legislation a “watershed moment” for decentralized finance, celebrating it as the United States’ first official pro-crypto law.

What’s Next for Crypto Legislation?

The crypto industry is now shifting its focus to broader legislative priorities, particularly around stablecoins and market regulations. Bills targeting these areas have already passed relevant committees in both chambers of Congress, awaiting floor votes.

President Trump has urged lawmakers to deliver a stablecoin bill by August, reflecting the administration’s interest in providing regulatory clarity for the growing digital asset market. If successful, these measures could set the stage for a comprehensive U.S. crypto framework.

A New Era for U.S. Crypto Policy?

The successful reversal of the IRS rule is a significant step for crypto advocacy in the U.S. It underscores the industry’s potential to shape legislation and signals growing bipartisan recognition of blockchain technology’s economic and innovative promise.

As the U.S. inches towards a regulated crypto environment, the world watches to see if this momentum will lead to a balanced framework that fosters innovation while addressing risks. For now, DeFi celebrates a hard-fought victory in the halls of Congress.