Trump Repeals IRS DeFi Broker Rule, SEC Eases Crypto Regulations

President Trump has signed a landmark bill repealing the IRS DeFi Broker Rule, marking the first-ever crypto-specific legislation passed in the United States. This bipartisan-supported bill is seen as a victory for privacy, innovation, and a reduction in the burden on the IRS. The repealed rule, which mandated that decentralized finance (DeFi) platforms report transaction data to the IRS, was criticized for stifling growth and imposing unnecessary burdens on the sector. Senator Ted Cruz and Representative Mike Carey introduced the Congressional Review Act of Disapproval (CRA), H.J. Res. 25, which ended this rule. Representative Carey highlighted that this bill was the first cryptocurrency law passed and the first CRA related to taxes to be enacted. He argued that the rule hindered American innovation, infringed on the privacy of everyday Americans, and would have overwhelmed the IRS with new filings during tax season. Industry leaders celebrated the move, with Bo Hines, the Executive Director of the President’s Council of Advisers on Digital Assets, noting that Trump’s decision was a significant step toward ushering in a golden age for digital assets.

Simultaneously, the SEC provided new crypto asset guidance and dismissed charges against Nova Labs, signaling a shift in regulatory approach. The SEC’s Division of Corporation Finance released new guidance on securities issuance and registration disclosures in the crypto asset market. This guidance addresses disclosure requirements related to price volatility, technological risks, and legal uncertainties, stressing 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. 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. These developments collectively signal a turning point for cryptocurrency regulation in the US, balancing innovation with investor protection as the industry continues to mature.

The recent actions taken by President Trump and the SEC highlight a transformative phase in U.S. cryptocurrency legislation. By repealing the IRS DeFi Broker Rule and establishing clearer regulatory guidelines, significant strides have been made towards fostering a more innovative and privacy-respecting environment for digital assets. These changes not only affect market sentiment but also provide a hopeful outlook for the future of cryptocurrencies and their integration into the mainstream economy. The repeal of the IRS DeFi Broker Rule is a clear indication of the government's commitment to reducing regulatory burdens and promoting innovation in the crypto sector. The new guidance from the SEC on securities issuance and registration disclosures in the crypto asset market provides much-needed clarity for issuers and investors alike. The dismissal of charges against Nova Labs and the dropping of the lawsuit against Ripple further demonstrate the SEC's evolving approach to regulating the crypto industry. Overall, these developments are a positive step forward for the crypto industry, paving the way for greater innovation and adoption in the years to come.