By Key Points
- IRS DeFi Broker Rule Repealed in First-Ever Crypto Law
- First crypto-specific bill signed into law by President Trump
- IRS DeFi Broker Rule officially repealed, ending mandatory DeFi reporting
- SEC drops charges against Nova Labs and issues new crypto guidance
- A turning point in U.S. crypto regulation and innovation support
In a major win for the digital asset industry, President Donald Trump has officially signed the first-ever U.S. crypto-specific bill into law, repealing the controversial IRS DeFi Broker Rule. The legislation, passed on April 10, 2025, marks a significant policy shift that favors innovation, privacy, and reduced regulatory pressure on decentralized finance (DeFi) platforms.
The rule, introduced during the Biden administration, sought to classify certain DeFi participants as “brokers” and required them to report extensive transaction data to the Internal Revenue Service (IRS). Critics said this measure would have imposed unreasonable compliance on developers, users, and platforms while compromising user privacy.
The bill—H.J. Res. 25, introduced by Senator Ted Cruz and Representative Mike Carey—was passed with strong bipartisan support: 70–28 in the Senate and 292–132 in the House. It is the first crypto-focused Congressional Review Act (CRA) resolution to be enacted and notably, the first CRA tax-related measure to become law.
Industry leaders echoed the sentiment. Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, called it a “huge moment” for the crypto industry.
Huge Moment! First crypto legislation ever signed into law.
Repealing the IRS’s DeFi broker rule protects innovation and privacy—another big step toward ushering in a golden age for digital assets.
Grateful to @POTUS, @tedcruz, and @RepMikeCarey for their leadership! https://t.co/lkdxbtJfnR
— Bo Hines (@BoHines) April 10, 2025
This repeal is more than just policy change—it’s a signal that Washington is beginning to take a pro-crypto stance, and the momentum is only growing.
For more on Trump’s economic policies affecting digital markets, check out our coverage of the Trump Tariff Pause, a move that’s also stirring conversation among crypto investors.
SEC Drops Charges, Offers New Clarity for Crypto Projects
In a parallel move reinforcing this new regulatory tone, the U.S. Securities and Exchange Commission (SEC) also took significant steps on April 10 to reduce uncertainty in the crypto market.
First, the SEC’s Division of Corporation Finance released fresh guidance on the application of federal securities laws to crypto assets. This guidance covers:
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Required disclosures for crypto token issuances
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Legal risks and compliance transparency
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Price volatility and tech risk evaluations
The SEC stated that these updates aim to help crypto projects and investors better understand what’s expected when launching or investing in digital assets. It’s a clear signal of a shift from aggressive enforcement to constructive regulation.
Second, the SEC dismissed charges against Nova Labs, the team behind the Helium Network. Previously accused of offering unregistered securities, the project can now move forward without regulatory cloud cover.
Today marks a major win for Helium and The People’s Network! The SEC has agreed to dismiss its unregistered securities claims with prejudice. Helium Hotspots and the distribution of HNT, MOBILE, and IOT through the Helium Network are not securities. It also means that the SEC… pic.twitter.com/vJSBAFht8T
— Helium🎈 (@helium) April 10, 2025
This isn’t an isolated case. Since Gary Gensler’s departure in January 2025, the SEC has dropped multiple lawsuits, including its long-running battle with Ripple. A preliminary settlement has already been filed, and both parties have moved to pause the appeals process.
These developments offer room for builders across ecosystems like Ethereum, which recently saw a major price surge, to innovate freely with reduced fear of regulatory overreach.
How the DeFi Rule Repeal Impacts the Crypto Landscape
The repeal of the IRS DeFi Broker Rule does more than just eliminate a reporting requirement. It redefines how the U.S. government views decentralized finance, paving the way for broader adoption of blockchain technology and digital assets. The law offers clear relief for DeFi platforms, developers, and investors who feared being ensnared in complicated tax reporting and surveillance mechanisms.
This could also reduce friction for new entrants into the market, as legal uncertainty has long been a barrier to innovation. With the IRS rule gone, smaller developers and startups in the DeFi space will find it easier to scale without the looming threat of complex broker classifications.
This isn’t just about tax law. It’s about restoring trust in the U.S. as a crypto-friendly environment, especially after years of mixed messages from regulators. As clarity improves, so too does the path for greater mainstream adoption—whether that’s through decentralized applications, asset tokenization, or NFT ecosystems.
It also ties into the broader theme of Bitcoin decoupling from traditional assets during financial crises. As shown in recent coverage of Bitcoin decoupling from stocks and Bitcoin outlasting the U.S. dollar, many view crypto as a hedge against traditional monetary instability—making regulatory clarity all the more important.
And with market events like the Bitcoin ETF outflows driven by tariff fears, institutional investors are watching for every policy change that could influence volatility or opportunity.
Projects like Magic Eden, which recently made headlines with its Slingshot acquisition, stand to benefit from a stable, transparent U.S. regulatory framework. The repeal could boost investor confidence in new ventures, encouraging more mergers, acquisitions, and innovation in the space.
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