In a surprising and important development for the cryptocurrency sector, U.S. President Donald Trump has signed the first-ever piece of crypto-centric legislation into law—formally repealing the Internal Revenue Service’s controversial DeFi broker reporting rule.
This shift could change how DeFi platforms and participants in the United States are regulated, virtually guaranteeing that they will continue to operate in a “favorable” policy environment.
The legislation removes the requirement for decentralized finance protocols and developers to submit reports disclosing user data to the IRS as “brokers.” And what a relief! This was hated by just about everyone in the crypto universe when it was proposed, because, as we argued then and now, decentralized platforms operating under the principles of DeFi just don’t have the ability to collect or report information about the kind of customers they serve.
When the news hit, the market didn’t wait long to react. The most notable beneficiary, it seems, was Curve Finance’s native token, $CRV, which not only rocketed above the 60-cent mark but is also maintaining that level as I type, trading at roughly 0.6027. DeFi has, in recent months, been a sector without a lot of sunshine. The combination of regulatory uncertainty and an overall underperforming market has really settled a dark cloud over the whole sector. But enthusiasm around the sector spiked once again in the wake of the Turkey news.
A Bullish Signal for the DeFi Ecosystem
In addition to $CRV, several other prominent DeFi tokens responded positively to the announcement. Uniswap ($UNI), MakerDAO ($MKR), Lido ($LDO), Aave ($AAVE), and Pendle ($PENDLE) all posted significant intraday rallies—gains, in some cases, approaching double digits.
Originally introduced in the Infrastructure Investment and Jobs Act of 2021, the IRS broker rule had, for years, been a thorn in the side of the DeFi ecosystem. It took the traditional brokerage-style tax reporting requirements and extended them to decentralized platforms—even though these latter platforms frequently operate without a central team or intermediaries. To many folks, anyway, the rule looked like an existential threat to DeFi innovation in the United States.
🚨 $CRV briefly surged past 0.6 USDT, now trading at 0.6027 USDT (+18% 24H), possibly boosted by the official repeal of the IRS DeFi broker rule.
🇺🇸 President Trump has signed the first-ever crypto legislation into law, nullifying the IRS's DeFi broker requirements.#CRV #DeFi…
— Followin (@followin_io) April 11, 2025
With its repeal now signed into law, DeFi protocols can move ahead with more confidence. The industry has now been relieved of a number of compliance headaches, and the legal uncertainty that developers faced just for launching or maintaining decentralized applications has all but gone away. Experts think this move could spark a new wave of development activity in the United States, which has historically lagged behind other, more crypto-friendly jurisdictions.
The ruling also arrives at a pivotal period for the wider DeFi ecosystem, which has been in a drawn-out downturn since late 2023. Though the total value locked (TVL) across DeFi protocols has somewhat steadied in recent months, growth has been slow due to investor wariness and ongoing regulatory challenges. The fresh legislation could alter that growth path, particularly if it leads to a return of capital to DeFi projects seen as regulatory success stories.
A Turning Point for U.S. Crypto Policy?
The IRS rule’s repeal is viewed as a tremendous victory for DeFi, but it could also mark a shift in U.S. crypto policy. President Trump backing pro-crypto laws is a recent and obvious turn from an otherwise regulatory past. It positions his administration as increasingly friendly and even aligned with the digital asset innovation space.
The American political scene has witnessed the emergence of an increasingly vital subject: crypto policy. This is a matter not just of nerdy crypto half-understood by even the smartest politicians and their staffers, but one of clear and convincing policy positions. And in the case of this legislation, which may one day find its way into a court of law, the issue at stake is whether smart American lawmakers prefer to operate in a world of clear, rule-based outcomes or one in which not-so-smart actors get to operate in the dark.
Over the next few months, it seems that those participating in the market are quite optimistic about the prospect of regulatory rollbacks or clarifications that could benefit decentralized finance platforms like Compound or MakerDAO. That optimism seems to be justified, at least in the DeFi space, because this month we have already witnessed a substantial uptick in the values of DeFi-related tokens. The obvious question, though, is whether these more recent developments are sustainable.
As the dust settles, one thing is clear: a major political victory has been scored by the DeFi industry, and the markets are reacting in a positive manner. Whether this momentum can be sustained and moved forward will depend on the DeFi developers, users, and investors to take advantage of an industry that has just been given some regulatory breathing room.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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