According to Bloomberg, President Donald Trump has signed legislation to stop the IRS rule that would have compelled some cryptocurrency brokers to offer tax information about transactions on their platforms. The legislation is widely seen as a win for the crypto industry.
The IRS reporting rule was due to take effect in 2026. Although it was not yet in force, it had already ignited strong resistance from industry participants. The regulation would have forced certain decentralized exchanges to report their customers’ digital assets gross sales to the tax agency, Bloomberg reports.
Those advocating for the sector said that decentralized exchanges cannot be defined as brokers. They cannot comply with the rule since they are usually automated and run by software applications and not actual individuals. Instead, these exchanges utilize blockchain technology in order to directly connect crypto buyers and sellers without using an intermediary to hold users’ tokens, Bloomberg explains.
The bill was finalized at the end of the Biden administration and thus it becomes vulnerable to a challenge using the Congressional Review Act. The act affords lawmakers 60 days to “disapprove” of a federal agency-issued regulation.
According to Bloomberg, the regulation was meant to limit the amount of unpaid taxes on crypto transactions, with some estimating that at least half of the levies that are owed on digital asset trades remain uncollected. The congressional tax scorekeeper is estimating that around $4 billion in levies in the course of 10 years will not be paid because of the rule's repeal.
Congress passed the resolution reversing the rule with significant bipartisan support in both chambers in March.
Lawmakers are looking to advance several other crypto priorities while Republicans hold majorities in both chambers, such as legislation creating regulatory frameworks for stablecoin payments, codifying the establishment of a strategic Bitcoin reserve as well as the creation of a U.S. digital asset stockpile, Bloomberg reports.