President Donald Trump signed legislation to block an Internal Revenue Service rule that would have forced some cryptocurrency brokers to provide tax information on transactions conducted on their platforms, delivering another victory to the digital asset industry he has vowed to champion in office.
The IRS reporting rule — not yet in force — was due to take effect in 2026, but it had already sparked furious opposition from the crypto industry. The regulation required certain decentralized exchanges to report their customers' gross sales of digital assets to the IRS.
Crypto industry advocates argued that decentralized exchanges can't be defined as brokers or comply with the rule because they are typically automated and run by software applications, rather than individuals. These exchanges use blockchain technology to directly connect crypto buyers and sellers without the need for an intermediary to hold users' tokens.
It was finalized at the end of President Joe Biden's term, making it vulnerable to a Congressional Review Act challenge that gives lawmakers 60 days to "disapprove" of a regulation issued by a federal agency.
The regulations were intended to help curb the amount of unpaid taxes on crypto transactions, with some estimates saying that
The Republican-controlled Congress
Lawmakers are seeking to advance several other crypto priorities while Republicans hold majorities in both chambers, including legislation to create a regulatory framework for
Trump has vowed to bolster the crypto industry by easing regulatory constraints, elevating crypto-friendly officials and hosting industry executives at the White House. His commitment to the industry marks a change for a president who was previously skeptical about digital assets but embraced them during the 2024 election as crypto companies donated to his campaign.
