In a sweeping move that could reshape the future of digital finance in the United States, President Donald Trump has officially revoked a controversial crypto-related tax rule introduced under the previous administration. The decision eliminates a requirement that categorized decentralized finance (DeFi) platforms as brokers, exempting them from complex tax reporting obligations that had drawn criticism from across the crypto industry.
The repealed rule, originally enforced by the Internal Revenue Service (IRS), would have imposed strict data collection responsibilities on decentralized platforms that operate without intermediaries. These platforms argued that the mandate was unfeasible, as they lack the infrastructure to gather user information comparable to traditional brokers. Industry leaders warned that enforcing such regulations could stifle innovation, compromise user privacy, and push crypto development outside U.S. borders.
In tandem with this legislative reversal, the Trump administration is reshaping the broader regulatory landscape for digital assets. A major structural shift within the Department of Justice saw the dissolution of the National Cryptocurrency Enforcement Team, an entity previously tasked with overseeing criminal activity within crypto markets. This marks a pivot in enforcement priorities—from broad scrutiny of the crypto sector to targeted prosecution of bad actors misusing digital currencies.
The Securities and Exchange Commission (SEC) has also taken a less aggressive stance. Investigations into some of the largest cryptocurrency exchanges have been halted, signaling a deliberate move toward deregulation. These decisions collectively reflect a significant departure from the enforcement-heavy approach adopted in recent years.
Adding to the administration’s pro-crypto narrative, plans are underway to create a federal reserve of digital assets. This initiative includes accumulating prominent cryptocurrencies like Bitcoin, Ethereum, Solana, and XRP as part of a strategic push to integrate digital assets into the national economic framework. By holding such assets, the government aims to establish greater involvement in the digital economy while promoting blockchain-based innovation.
This series of reforms indicates a larger policy philosophy: support for emerging technologies, economic competitiveness, and reducing regulatory roadblocks. With these sweeping changes, the United States appears to be positioning itself as a more attractive hub for crypto startups, blockchain development, and institutional investment in digital finance.
As the digital asset industry continues to evolve, the coming months are likely to reveal how these new policies will impact market behavior, investment trends, and the U.S.’s standing in the global crypto race.