Compass Investments

– Catenaa April 11, 2025 – President Donald Trump on Thursday rubber-stamped a resolution repealing a Biden-era IRS rule. The rule required crypto brokers to collect and turn over user information to the tax agency, which was hailed by supporters as a triumph for digital asset innovation.

The resolution, drafted by Rep. Mike Carey (R-Ohio) and Sen. Ted Cruz (R-Texas), was the first cryptocurrency bill signed into law. The repealed rule drew sharp criticism for extending traditional securities reporting requirements to participants in decentralized financial systems, forcing them to provide tax forms and detailed transaction records.

This repeal removes unnecessary bureaucracy and allows the IRS to focus on its ongoing obligations to taxpayers, Carey said in a statement after the signing ceremony.

The rule was finalized by the Treasury Department in December and applied to so-called external service providers that provide access to decentralized financing protocols. Critics said the measure would stifle software development and drive innovation out of the country.

Trump’s decision followed bipartisan votes in both houses of Congress, with some Democrats, including Senate Minority Leader Chuck Schumer, joining Republicans in supporting the measure.

Amanda Tuminelli, executive director of the DeFi Education Foundation, endorsed the move, calling it a critical change for the crypto industry and a step toward a sensible, forward-thinking approach to digital assets.

The White House previously called the rule a midnight ruling, hinting that it would be repealed early in Trump’s term.