Trump Just Gave DeFi a Free Pass—Now What?

In a move that’s already sending crypto circles into celebratory overdrive, President Donald Trump has signed off on a resolution killing the IRS’s controversial “DeFi Broker Rule.” This Biden-era regulation tried to jam decentralized finance into a traditional finance-sized box, treating platforms with no central authority like banks—forcing them to track users and report their activity to the feds.

That idea is now officially dead.

The reversal, led by Ohio Rep. Mike Carey, leaned on the Congressional Review Act—a legislative sledgehammer rarely swung, but highly effective when it is. Congress, surprisingly unified for once, rolled back the rule with a solid bipartisan vote: 70-27 in the Senate and 292-132 in the House.

Carey called the IRS rule a privacy nightmare and a logistical mess, claiming it would have buried both innovators and tax authorities under data they couldn’t realistically handle. He wasn’t wrong. Asking code-based DeFi protocols to report tax data is like asking a vending machine for your W-2.

This is more than a symbolic win. It’s the first time pro-crypto legislation has actually made it through Congress and gotten a presidential signature. That milestone matters. It’s a signal: crypto isn’t just fringe tech anymore—it’s now got real political muscle.

But don’t get too cozy. With DeFi off the hook (for now), the next battleground is already forming: stablecoin regulation. Both chambers have bills in motion, and Trump wants a finished product on his desk by August. If lawmakers keep riding this bipartisan crypto wave, we might actually see a functional framework emerge.

Until then, DeFi can breathe a little easier—and Washington just proved it knows what “gas fees” are. Sort of.

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