Trump's Crypto Overhaul: A Political Power Play

President Trump signed a bill reversing a new IRS rule expanding broker definitions to include decentralized crypto exchanges. The rule was criticized as unworkable for DeFi platforms. This move aligns with Trump's pro-crypto stance and aims to support the cryptocurrency industry by rescinding regulations that could hinder DeFi operations.

In a significant legislative move, U.S. President Donald Trump signed a bill to overturn a recently updated IRS rule that expanded the definition of a broker to include decentralized cryptocurrency exchanges. This development marks a nod to the crypto industry, which opposed the IRS's revised guidelines.

The Congressional Review Act facilitated this legislative overturn, allowing both the House and Senate to nullify the revision with a straightforward majority vote. The cryptocurrency sector had widely criticized the new IRS regulation, asserting its impracticability for decentralized finance (DeFi) platforms.

The IRS's framework, part of the bipartisan 2021 Infrastructure Investment and Jobs Act, aimed to enhance tax compliance among crypto users. However, the intervention highlights Trump's commitment to championing the cryptocurrency sphere, as he positions himself as a 'crypto president' while making strides towards deregulating the sector.

(With inputs from agencies.)