Trump Repeals Controversial Crypto Tax Reporting Rule
President Trump repeals a crypto tax rule requiring brokers to report user transactions to the IRS.
- Trump signs off on repealing IRS crypto reporting rule.
- The rule required 1099s for crypto transactions by custodial brokers.
- The resolution was led by Ted Cruz and Mike Carey.
Major Win for Crypto: Trump Nixes IRS Reporting Mandate
In a significant shift for U.S. crypto regulation, President Donald Trump has officially repealed a tax rule that would have forced crypto brokers to report detailed user transactions to the IRS.
Originally finalized during the last days of the Biden administration, the rule required custodial brokers to track and report digital asset transaction data and issue Form 1099s for non-employment income. Critics argued the rule was overly burdensome, especially for decentralized platforms and smaller entities with limited compliance capabilities.
What the Repeal Means for Crypto Users and Brokers
The now-repealed rule was seen as part of a broader push for tax transparency and enforcement in the growing digital asset space. However, its requirements raised concerns among privacy advocates and crypto businesses alike.
Under the rule, brokers—including exchanges and wallet providers—would have been required to collect personal transaction details from users, potentially undermining user privacy and putting smaller platforms at risk of non-compliance penalties.
By repealing the regulation, Trump has aligned himself with a more crypto-friendly approach, a stance welcomed by many in the digital asset community.
Legislative Backing and What Comes Next
The resolution to roll back the IRS rule was introduced by Republican lawmakers Senator Ted Cruz and Representative Mike Carey. It passed both the House and Senate before reaching the President’s desk.
Cruz described the rule as “a direct attack on financial privacy and innovation.” The repeal reflects ongoing debates in Washington over how best to regulate cryptocurrency without stifling growth.
As regulatory frameworks continue to evolve, this move could signal a shift in how federal agencies approach crypto taxation—potentially paving the way for more balanced, innovation-friendly policies in the near future.
