President Donald Trump has signed a new law that cancels a rule from the Internal Revenue Service (IRS). This rule had expanded the definition of a “broker” to include decentralized cryptocurrency exchanges, also known as DeFi platforms.

The rule was introduced at the end of President Biden’s term in December 2024. It required DeFi platforms to collect and report user information for tax purposes, just like centralized exchanges such as Coinbase and Kraken.

However, many in the crypto industry said this rule was unfair and unworkable. Unlike centralized exchanges, DeFi platforms allow users to trade directly with each other without a middleman. Because of this, DeFi platforms do not know who their users are, making it almost impossible for them to report user data to the IRS.

In March, both the House of Representatives and the Senate voted to cancel the rule using the Congressional Review Act, which allows lawmakers to reverse new federal regulations.

The IRS rule was originally part of a larger effort to stop crypto tax evasion. It came from the $1 trillion Infrastructure Investment and Jobs Act passed in 2021, which aimed to increase tax reporting in the crypto space.

Trump, who promised during his campaign to be a “crypto president,” has taken several steps in support of digital assets. In his first week as president, he created a cryptocurrency working group to suggest new rules for the industry. In March, he also signed an executive order to build a national stockpile of Bitcoin.

This latest move shows Trump’s continued support for the crypto industry, especially decentralized finance.