Trump Overturns Biden Tax Clampdown on Crypto Brokers

In a sweeping move likely to reshape the American crypto landscape, Donald Trump has reversed the Biden administration’s controversial tax enforcement rules on crypto brokers.

Signed as part of a broader economic relief initiative, the executive order repeals sections of the Infrastructure Investment and Jobs Act (2021) that required crypto brokers defined broadly to include exchanges, wallet providers, and even some miners to report user transaction data to the IRS.

The reversal comes amid Trump’s re-election campaign efforts to appeal to both digital asset enthusiasts and fiscal conservatives. The original rule had sparked outrage across the crypto industry, with critics arguing it was too vague, overly burdensome, and potentially damaging to innovation.

“This is a major win for Web3 companies operating in the U.S.,” said Isaac Moreno, policy director at the Crypto Innovation Council. “The old law forced many firms to consider moving offshore or shutting down entirely.”

Trump’s order will immediately halt the implementation of the expanded reporting requirements that were set to go live in 2025. Exchanges such as Coinbase and Kraken had been lobbying for either a delay or repeal, warning that compliance costs would skyrocket and user privacy could be compromised.

For retail investors, the change means a return to a looser environment, at least for now. Many had been bracing for stricter documentation of every buy, sell, and transfer. The repeal doesn't mean crypto gains won’t be taxed, but it does remove automatic reporting by platforms, shifting the burden back to individuals.

Not everyone is cheering the news. Some Democrats claim the reversal creates a "wild west" loophole that benefits high-volume traders and makes tax enforcement harder. Senator Elizabeth Warren called it “a step backward for transparency and regulation”.

Still, the crypto market reacted favourably. Bitcoin held above $82,000, and altcoins like Avalanche (AVAX) and Chainlink (LINK) saw minor upticks following the announcement.

For now, the message from Trump’s camp is clear: less red tape, more crypto freedom. Whether that leads to broader adoption or another round of speculation remains to be seen.