Trump Overturns Biden's 'DeFi Broker Rule' in Major Win for Crypto Industry

WASHINGTON, April 12 In a landmark policy shift, President Donald Trump has officially repealed the controversial “DeFi Broker Rule”—a regulatory measure introduced during President Biden’s administration aimed at increasing tax compliance in the cryptocurrency sector. The decision, made via executive order, marks a dramatic reversal in the U.S. government’s approach to decentralized finance (DeFi) and solidifies Trump’s stance as a pro-crypto leader.

What Was the DeFi Broker Rule?

Formally titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales,” the rule was scheduled to take effect in 2026. It required decentralized platforms—like DeFi exchanges and crypto protocols—to report users’ transaction data to the Internal Revenue Service (IRS). The objective was to clamp down on tax evasion by introducing greater transparency in crypto trading.

Crypto advocates, however, strongly opposed the rule, citing that decentralized platforms operate through smart contracts without centralized intermediaries, making compliance with traditional broker definitions technically infeasible.

Trump: First U.S. President to Sign Crypto Legislation into Law

Trump’s decision to nullify the DeFi rule is the first official crypto law signed by any U.S. President. During the signing ceremony, U.S. Representative Mike Carey (R-Ohio) applauded the move, saying:

“The DeFi Broker Rule needlessly hindered American innovation, infringed on privacy, and would have overwhelmed the IRS with compliance paperwork. President Trump is ensuring that the U.S. remains a leader in blockchain technology and digital finance.”

The repealed regulation was expected to generate an estimated $4 billion for the U.S. Treasury, according to CNN. However, critics argued it would have come at the cost of privacy, innovation, and technical practicality.

Senate Support and Industry Backing

Trump’s executive order follows a Senate resolution passed in March that recommended overturning the rule. In a statement, the Senate warned that the rule would impose “unprecedented compliance burdens” and raise significant privacy concerns by demanding DeFi platforms to report user data they are not equipped to collect.

The broader crypto community has welcomed Trump’s decision as a pro-growth move, allowing decentralized platforms to operate without fear of impractical IRS mandates.

Trump’s Pro-Crypto Momentum

Since returning to office, Trump has taken several bold steps in support of the crypto sector:

• Created a Crypto Task Force under the SEC to fast-track crypto regulation.

• Signed an executive order to establish a national Bitcoin reserve and crypto stockpile.

• Dropped SEC lawsuits against major crypto firms including Binance, Ripple, and OpenSea.

• Supported the disbanding of the National Cryptocurrency Enforcement Team (NCET), which was established during Biden’s term.

Trump has repeatedly pledged to transform the U.S. into the global hub for cryptocurrency and blockchain innovation, aligning his administration with the rapidly growing digital asset industry.