In a landmark move for the cryptocurrency sector, President Trump has officially signed into law a bill that overturns the IRS's controversial "DeFi Broker Rule." The rule, which had been heavily criticized by DeFi (Decentralized Finance) platforms and crypto advocates, required decentralized platforms to report user transactions, raising concerns about privacy and compliance burdens
The new legislation, passed with overwhelming bipartisan support in both the House and Senate, comes as a significant win for the DeFi community. The rule's repeal is seen as a step toward creating a more crypto-friendly regulatory environment in the U.S., encouraging innovation and allowing decentralized platforms to thrive without the stringent reporting requirements that could have stifled growth.
Supporters of the bill argue that the repeal helps to clarify the legal landscape for decentralized finance, which operates outside traditional financial systems. They view the move as part of a broader effort by the Trump administration to push forward a more progressive stance on cryptocurrency, balancing regulatory concerns with the need to foster innovation.
While the new law is a major victory, it also raises important questions about future regulation in the DeFi space. As the crypto sector continues to grow, lawmakers will likely face ongoing challenges in balancing consumer protection with the desire to support technological advancements.