President Donald Trump has signed what is the United States' first cryptocurrency law, eliminating a controversial Internal Revenue Service rule on DeFi platforms and charting a new course for digital asset regulation.
The cryptocurrency landscape in the United States is undergoing a momentous shift with the recent enactment of the first federal law directly impacting the sector. President Donald Trump signed a resolution that repeals an IRS regulation, the country's tax collection agency, which sought to regulate decentralized finance (DeFi) platforms as if they were traditional financial intermediaries.
The president's decision not only represents a victory for the crypto industry, which has actively fought against such regulations, but also indicates a possible new direction in US policy toward digital assets.
BUY ETHEREUMThe previous IRS rule, implemented in the final days of the Biden administration, required DeFi platforms to collect and report information about their users and transactions, a task the industry considered impractical due to the decentralized and, in many cases, anonymous nature of these platforms. The repeal of this rule has therefore been celebrated as a crucial step to foster innovation and growth in the DeFi sector in the United States.
Trump gives a break to Decentralized Finance (DeFi)
The main effect of this first cryptocurrency law is free DeFi platforms from IRS-imposed obligations, which would have forced them to act like traditional financial intermediaries. Critics of the rule argued that the decentralized nature of DeFi makes it difficult to collect user information, making it virtually impossible to comply with IRS requirements.
However, thanks to this repeal, developers and operators of decentralized protocols have greater freedom to innovate. without fear of sanctions for non-compliance of regulations that they consider unenforceable.
SOLANA BUYSThe now-repealed IRS rule had become a major sticking point for the crypto industry, as it required DeFi platforms to collect information on users and report it to the IRS, similar to how broker-dealers report their clients' transactions. However, the structure of DeFi platforms, which operate through smart contracts and without a centralized entity, made this requirement difficult to comply with. The industry had argued that the rule was controversial and ill-suited to the reality of the crypto market, stifling innovation and potentially driving companies to relocate to jurisdictions with more favorable regulations.
Now, with the recent signing of this first law, they open New opportunities for the growth and development of DeFi projects in the United States.
Certificate
Main Cryptocurrencies Course
Basic levelBit2Me Academy brings you a new course in which you will learn everything you need about the most important cryptocurrencies that exist today.
Congress unites in support of crypto innovation
The repeal of the IRS rule enjoyed strong bipartisan support in Congress. Both the Senate and House of Representatives reportedly voted in favor of the resolution, demonstrating a growing recognition among lawmakers of the importance of the cryptocurrency industry and the need to create an appropriate regulatory framework. Key figures such as Representative Mike Carey of Ohio, who sponsored the resolution in the House, welcomed President Trump's decision.
“I thank President Trump for signing this important bill and Crypto Czar Sacks for his leadership in supporting America’s continued place as a global leader in the emerging cryptocurrency industry.”, he pointed Tortoiseshell.
Bipartisan support for this measure also reflects a growing understanding that cryptocurrency regulation is a complex issue that requires a balanced approach.
Lawmakers are increasingly aware that overly restrictive regulations can stifle innovation and drive companies to seek refuge in other countries. At the same time, there is recognition of the need to protect investors and prevent illicit activities in the crypto space. The challenge, therefore, is to find a equilibrium that allows the industry to grow while mitigating risks.
PREPARE YOUR WALLETOn the other hand, with the signing of this first crypto law, Donald Trump fulfills a key promise of his administration, of support innovation in the cryptocurrency space.
Next steps: Stablecoin regulation is on the horizon
Following the historic signing of this law, attention now turns to creating a regulatory framework for stablecoins, cryptocurrencies designed to maintain a stable value by pegging them to a reserve asset, such as the US dollar.
The Donald Trump administration has signaled that the regulation of these stablecoins is one priority on its crypto policy agenda by 2025. Currently, there are bills in both houses of Congress seeking to establish clear rules for stablecoin issuers, addressing issues such as reserve requirements, auditing, and consumer protection.
TRADE WITH STABLECOINSStablecoin regulation is therefore seen as a fundamental step toward widespread cryptocurrency adoption. These stablecoins are widely used in cryptocurrency trading and cross-border transactions, and their stability makes them an attractive tool for investors and businesses. However, the lack of clear regulation has raised concerns about their transparency and security. Therefore, the implementation of a clear regulatory framework could Increase confidence in stablecoins and encourage their use in a wider range of applications.
A new chapter for crypto policy in the United States
The signing of this law marks a historic shift in US cryptocurrency policy. With a pro-innovation president and a collaborative Congress, there is an opportunity to create a regulatory framework that encourages responsible growth in the crypto industry. This new approach could position the US as a leader in the digital asset space.
BUY BITCOINCreating a cryptocurrency-friendly regulatory environment could attract investment and talent to the country, driving innovation and economic growth. It could also allow American companies to compete more effectively in the global cryptocurrency market.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
