WASHINGTON, D.C. –Today, U.S. Representative Mike Carey (R-Ohio-15), a member of the House Ways and Means Committee, attended the signing ceremony where President Trump signed his bill, which repealed the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges Rule, otherwise known as the “DeFi Broker Rule,” into law.
This is the first cryptocurrency bill ever signed into law and the first tax-related Congressional Review Act of Disapproval (CRA) signed into law.
“The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season. By repealing this misguided rule, President Trump and Congress have given the IRS an opportunity to return its focus to the duties and obligations it already owes to American taxpayers instead of creating a new series of bureaucratic hurdles,” Rep. Carey said. “I thank President Trump for signing this important bill into law and Crypto Czar Sacks for his leadership in supporting America’s continued place as the global leader in the emerging crypto industry.”
BACKGROUND:
The DeFi Broker Rule, which required self-custodial digital asset wallet providers and other developers of noncustodial software to submit information reports to the IRS, was finalized at the end of 2024.
The rule far exceeded the scope of the Infrastructure Investment and Jobs Act’s (IIJA) instructions to IRS and the Department of the Treasury regarding the establishment of rules for digital asset exchanges.
This CRA allowed Congress to rescind the rule and reinforce its intent for the IIJA. With its passage, this law now prohibits any future administration from issuing similar rules without new legislation, ensuring crypto wallets are protected in the future.
This legislation was led in the U.S. Senate by U.S. Senator Ted Cruz (R-Texas).
The bill passed out of the Ways and Means Committee on February 25, 2025.
This bill passed the full U.S. House of Representatives on March 11, 2025.
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