Compass Investments

– In a pivotal moment for the cryptosphere, Donald Trump has signed the first-ever cryptocurrency bill into law. The major milestone for digital assets in the US was April 10, 2025. The bill overturns a controversial IRS ruling against decentralized financial platforms (DeFi).

The rule, passed in the final days of Biden’s presidency, classified DeFi exchanges as brokers, requiring them to collect and report user data to the IRS. The move was widely criticized by the crypto community, which argued that DeFi platforms without brokers cannot meet such requirements.

The repealed rule was part of a larger effort to strengthen the tax reporting of cryptocurrencies stemming from the Infrastructure Investment and Jobs Act of 2021. It was aimed at preventing tax evasion by expanding reporting requirements to DeFi exchanges. But the crypto community and lawmakers said the rule unfairly limits innovation and privacy.

Both the House and Senate voted to repeal the rule using the Congressional Review Act, which allows Congress to overturn new federal regulations with a simple majority vote. The Trump administration has supported this legislation, believing it is important to protect American innovation and privacy.

This first-ever cryptocurrency bill signed by a U.S. president reduces concerns about the future of DeFi and could pave the way for more cryptocurrency-friendly policies, including possible regulation of stablecoins. However, as Bloomberg Law notes, Democrats have expressed concern that repealing the law would weaken the IRS’s ability to enforce tax laws – unlike stricter measures in the EU and OECD – which could lead to increased tax evasion.