Biden Signs Historic Crypto Bill, Replaces Trump-Era Regulation Loophole Allowing DeFi Platforms to Flourish

Trump Signs Landmark Crypto Law, Repeals Biden-Era IRS Rule Targeting DeFi Platforms

Washington D.C. - In a major victory for the cryptocurrency industry, former President Donald Trump has signed a landmark law aimed at promoting the growth and development of decentralized finance (DeFi) platforms.

The new law, titled the "Crypto Freedom Act," repeals a controversial rule introduced by the Internal Revenue Service (IRS) during the Biden administration, which targeted DeFi platforms and imposed strict reporting requirements.

The repealed rule, known as the "Virtual Currency Guidance," was introduced in 2021 and required DeFi platforms to report transactions involving cryptocurrencies like Bitcoin and Ethereum. The rule was widely criticized by the industry, which argued that it would stifle innovation and create unnecessary regulatory burdens.

The Crypto Freedom Act, which was passed with bipartisan support, reverses the Virtual Currency Guidance and instead establishes a more flexible regulatory framework for DeFi platforms. The law also requires the IRS to provide clearer guidance on the tax treatment of cryptocurrency transactions.

The signing of the Crypto Freedom Act marks a significant turning point for the cryptocurrency industry, which has long been plagued by regulatory uncertainty. The law is expected to boost confidence in DeFi platforms and encourage further investment in the sector.

"Today's signing of the Crypto Freedom Act is a major victory for the cryptocurrency industry," said a spokesperson for the Blockchain Association, a trade group that represents the interests of DeFi platforms. "We applaud President Trump for recognizing the importance of promoting innovation and job creation in the DeFi sector."

The law's passage is also seen as a blow to the Biden administration, which had pushed for stricter regulations on the cryptocurrency industry. The repeal of the Virtual Currency Guidance is a significant setback for the administration's efforts to impose greater oversight on DeFi platforms.

The signing of the Crypto Freedom Act comes as the cryptocurrency market continues to experience significant growth, with the value of major cryptocurrencies like Bitcoin and Ethereum reaching new highs. The law is expected to play a key role in shaping the future of the DeFi sector, which is expected to continue to drive innovation and job creation in the years to come.