Trump has signed the first-ever crypto bill into law, easing regulations and encouraging DeFi innovation.
A controversial IRS rule that required DeFi platforms to act like traditional brokers and report user data to the authority has been limiting innovation in the digital asset market. However, on the 10th of April, in what is deemed a “major win” for the crypto space, U.S. President Donald Trump signed a new legislation repealing this barrier into law.
What does this mean for Bitcoin and the Future of DeFi?
Most DeFi platforms in the U.S. have faced challenges in protecting user privacy while complying with the IRS requirements of data disclosure. DeFi platforms exist to minimize the bureaucracy associated with traditional finance infrastructure.
This includes both anonymity and transparency, depending on user requirements. As a result, the IRS rule was overwhelming for most DeFi projects, hindering their growth and user adoption. With the new Legislation, DeFi projects could be in for exponential growth, pushing demand for Bitcoin and cryptocurrencies higher.
