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First-Ever Crypto Bill Becomes Law: President Trump Repeals IRS DeFi Rule

3 mins
Updated by Harsh Notariya
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In Brief

  • President Trump signed a historic bill repealing the IRS DeFi Broker Rule, marking the first-ever crypto-specific bill passed in the US.
  • The bill, which passed with bipartisan support earlier, is seen as a win for privacy, innovation, and reducing burdens on the IRS.
  • Simultaneously, the SEC provided new crypto asset guidance and dismissed charges against Nova Labs, signaling a shift in regulatory approach.
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President Donald Trump signed the first-ever crypto-specific bill into law on April 10, 2025. The bill sought to repeal the IRS DeFi Broker Rule enacted under the Biden administration.

Previously, the resolution passed the Senate with a 70-28 vote and the House with a 292-132 margin. This reflected a widespread recognition of the need to protect innovation and privacy in the digital asset space.

Trump Signs Historic Crypto Bill, Ending IRS DeFi Broker Rule

The IRS DeFi Broker Rule mandated that decentralized finance (DeFi) platforms report transaction data to the Internal Revenue Service (IRS). It also suggested creating a new classification for brokers, including certain participants or entities involved in the DeFi sector.

Senator Ted Cruz and Representative Mike Carey introduced the Congressional Review Act of Disapproval (CRA), H.J. Res. 25, which ended this rule. In the latest press release, Representative Carey stressed that the bill marked the first cryptocurrency law passed and the first CRA related to taxes to be enacted. 

He argued that the rule now repealed, stifled growth and placed unnecessary burdens on the sector.

“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season. 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,” he stated.

Industry leaders widely celebrated the move. Bo Hines, the Executive Director of the President’s Council of Advisers on Digital Assets, took to X (formerly Twitter) to underline the positive implications of Trump’s decision on the crypto sector. 

“Huge Moment! First crypto legislation ever signed into law. Repealing the IRS’s DeFi broker rule protects innovation and privacy—another big step toward ushering in a golden age for digital assets,” Hines posted.

SEC’s Shift in Strategy Paves the Way for Crypto Growth

Meanwhile, this legislative milestone coincides with a series of positive regulatory developments. On the same day, the SEC’s Division of Corporation Finance released new guidance on securities issuance and registration disclosures in the crypto asset market. 

“As part of an effort to provide greater clarity on the application of the federal securities laws to crypto assets, the Division of Corporation Finance is providing its views about the application of certain disclosure requirements under the federal securities laws to offerings and registrations of securities in the crypto asset markets,” the statement read.

The guidance addresses disclosure requirements related to price volatility, technological risks, and legal uncertainties. It also stresses transparency to ensure investors are fully informed about these offerings’ risks, characteristics, and details. This move signals a more structured approach to regulating crypto securities, potentially easing compliance for issuers while protecting investors.

In another significant development, the SEC dismissed unregistered securities charges against Nova Labs, the firm behind the Helium Network. This ruling removed the securities classification from Helium Hotspots and Helium’s tokens (HNT, MOBILE, and IOT) distributed through the network.

“With this chapter finally closed, Helium, DePIN, and crypto can now move forward with full confidence, accelerating real-world adoption and innovation in the industry. Together, we’ll fight for a future where everyone and everything can connect freely—without the barriers of inflated costs or gatekeepers standing in the way,” Helium remarked.

The dismissal reflected a shift in the SEC’s enforcement strategy under new leadership following Gary Gensler’s departure in January 2025. Since a new presidential term began, the SEC has dismissed several lawsuits and investigations into many crypto companies.

Notably, the regulator even dropped its long-standing lawsuit against Ripple last month. BeInCrypto reported that both parties reached a preliminary settlement agreement in their legal dispute. They filed a joint motion to suspend the appeal process.

These developments collectively signal a turning point for cryptocurrency regulation in the US, balancing innovation with investor protection as the industry continues to mature.

Disclaimer

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Kamina Bashir
Kamina is a journalist at BeInCrypto, where she writes about all things crypto—think market trends, blockchain technology, regulatory shifts, and emerging trends in the digital asset world. With a gold medal in MBA International Business and extensive experience, she brings both expertise and clarity to her reporting. Previously at AMBCrypto, Kamina was responsible for writing and editing in-depth analyses, price predictions, AI and crypto blogs, and breaking news. She’s passionate about...
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