News View Non-AMP

Trump’s First Crypto Law? Congress Votes to Scrap IRS DeFi Rule

Published by
Nidhi Kolhapur

U.S. lawmakers have voted to cancel an IRS rule that required crypto companies, including decentralized finance (DeFi) platforms, to collect and report taxpayer and transaction information. The House passed the resolution with a 292-132 vote after the Senate had already rejected the rule. Originally finalized in the last days of former President Biden’s administration, the rule’s repeal could reshape how crypto businesses are regulated in the U.S.

Fox Business journalist Eleanor Terrett explained that because budget-related bills must start in the House, the Senate will need to vote on the resolution again. If it passes, it will head to President Trump’s desk, making it the first crypto-related bill to become law under his administration.

Concerns Over Business Impact and Innovation

Missouri Republican Jason Smith urged lawmakers to support the repeal, warning that the IRS rule could hurt U.S. businesses and slow down innovation. He pointed out that enforcing the rule would be nearly impossible because DeFi platforms, unlike banks or centralized exchanges, don’t have the ability to collect detailed user information.

Last week, 70 Senators voted to overturn the IRS rule, with Trump’s advisers encouraging him to sign it. Smith also noted that if the bill is signed into law, it would prevent the IRS from enforcing similar rules in the future.

Divided Opinions on Crypto Taxation

Not all lawmakers agreed with the repeal. Illinois Democrat Danny Davis defended the IRS rule, arguing that it was part of the 2021 Infrastructure Act. He compared crypto platforms to stock brokers, saying they should report transactions just like brokerage firms do.

Meanwhile, North Carolina Republican Tim Moore called the rule an overreach, warning that it could slow down U.S. innovation in digital assets.

Critics Warn of Financial Risks

Texas Democrat Lloyd Doggett strongly opposed the resolution, calling it “special interest legislation.” He argued that repealing the rule could help tax evaders, criminals, and terrorist financiers while adding $4 billion to the national debt—going against President Trump’s goal of reducing government spending.

All eyes are now on the Senate as the crypto world waits for the final word on this controversial rule.

Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

Recent Posts

World Liberty Announces Strategic Acquisition of Official Trump ($TRUMP) and the Closure of Trump Meme Wallet

Eric Trump, the Executive Vice President of the Trump Organization, has announced a strategic partnership…

June 7, 2025

Top Layer 2 Tokens Set to Rise Once Ethereum (ETH) Price Reaches $3000

Layer 2 tokens often derive their value from the Ethereum ecosystem, as they rely on…

June 7, 2025

Gemini Takes Step Toward IPO in Confidential Filing: Crypto IPOs Heat Up

Gemini Space Station, Inc., a well established cryptocurrency exchange by the Winklevoss brothers, has filed…

June 7, 2025

What is the Best Cryptocurrency to Invest in Now? Deep Dive into the Top Crypto to Buy Today for 2025 Bull Run

As the crypto market gains momentum heading into mid-2025, investors are wondering what is the…

June 6, 2025

Exabits’ RWA Approach To Tokenized GPU Power Democratises AI Cloud Computing Ownership

The Titans of AI are forging the future. With billions poured into the industry, where…

June 6, 2025

Apertum Designated a Key General Blockchain in Avalanche’s Tier-1 Ecosystem

Apertum has been officially designated as a key general blockchain within the Avalanche ecosystem —…

June 6, 2025