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Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
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Key Takeaways:
- President Donald Trump signed a resolution to overturn an IRS rule that would have required DeFi platforms to report user transactions.
- Ukraine proposed an 18% personal income tax and a 5% military levy on virtual asset gains.
- Paul Atkins was confirmed as the new SEC Chair under Trump.
It’s been a busy week for crypto regulation, with new policies, reversals, and enforcement actions making headlines from Washington to Kyiv.
The U.S. moved to repeal a controversial IRS rule targeting DeFi platforms, Ukraine proposed new taxes on digital assets to support its war effort, and Block Inc. agreed to a major settlement over compliance lapses tied to its crypto services.
Here’s what happened this week in crypto regulation news—and why it matters.
Trump Scraps IRS DeFi Broker Rule: A Win for the Crypto Industry?
In a shift away from Biden-era tax policy, former President Donald Trump signed a resolution this week to overturn an IRS rule that would have expanded reporting requirements for crypto brokers—including decentralized finance platforms.
The now-reversed IRS rule, finalized in late 2024 and set to take effect in 2026, would have required certain platforms to report customer transactions, essentially classifying some DeFi operators as “brokers.”
The intent was to improve tax compliance and help the U.S. Treasury capture billions in potentially uncollected crypto-related taxes.
But the rule drew backlash from industry leaders who argued it was overly broad and risked stifling innovation in the rapidly evolving DeFi space.
Critics said the IRS failed to fully understand the decentralized nature of these platforms, making compliance impractical or even impossible in some cases.
Trump’s decision to sign off on the repeal not only delivers a major win to the crypto lobby but also shows his increasingly pro-crypto stance—a position that may become a central plank of his financial policy.
Ukraine’s Proposed Crypto Tax Highlights Global Crypto Regulation News
Ukraine has taken a major step toward formalizing its approach to taxing digital assets.
The National Securities and Stock Market Commission (NSSMC) this week unveiled a proposal that would subject gains on virtual assets to an 18% personal income tax, with an additional 5% military levy. That brings the effective tax burden to 23%.
Shared via Telegram by NSSMC head Ruslan Magomedov, the proposal appears to be part of Ukraine’s broader effort to modernize its financial system and align with international standards, particularly as the country continues to seek closer integration with Western institutions.
While the proposal is not yet law, its detailed framework suggests Ukraine is serious about bringing crypto out of the shadows.
The military levy, in particular, reveals the government’s need for new revenue streams amid the ongoing conflict with Russia.
Block Inc. Hit with $40M Fine Over Cash App Compliance Failures
In the private sector, Block Inc.—the parent company of Cash App—was dealt a regulatory blow this week.
The digital payments firm agreed to a $40 million settlement with the New York Department of Financial Services (NYDFS) following an investigation into anti-money laundering (AML) lapses tied to its crypto services.
The consent order, reviewed by Bloomberg, reveals that Block failed to perform adequate customer due diligence, overlooked suspicious activity, and lacked robust transaction screening processes—especially around high-risk Bitcoin activity.
This isn’t just a slap on the wrist, it’s a wake-up call for fintech firms straddling traditional finance and crypto.
Regulatory agencies are increasingly unwilling to tolerate lax compliance, especially when crypto is involved.
The Block case also shows a broader trend: regulators are not just focused on setting new rules—they’re actively enforcing existing ones.
Companies operating in the crypto space must prepare for greater scrutiny, especially in high-stakes jurisdictions like New York.
Paul Atkins Confirmed as SEC Chair Under Trump Administration
In another shift in the regulatory landscape, Paul Atkins has officially been confirmed as the new chair of the U.S. Securities and Exchange Commission (SEC).
The Senate voted 52 to 44 in favor of the nomination, giving Atkins full authority over the agency tasked with overseeing America’s securities markets—including crypto assets that fall under its purview.
Atkins, a long-time critic of regulatory overreach, is expected to take a markedly different approach from his predecessor, Gary Gensler.
His appointment adds yet another layer to an already dense week in crypto regulation news.
Rep. Troy Downing Slams Gensler in Heated Committee Hearing
If there was any doubt about the political divide over crypto, look no further than this week’s fiery House Financial Services Committee hearing.
Representative Troy Downing (R-MT) openly criticized former SEC Chair Gary Gensler for what he described as an “ideological crusade” against the crypto industry.
During the April 9 session, Downing accused Gensler of failing to provide meaningful guidance and instead fostering an environment of hostility that pushed innovation offshore.
His remarks captured the frustration of many in the crypto space who felt blindsided by aggressive enforcement actions and a lack of regulatory clarity during Gensler’s tenure.
Ongoing Crypto Regulation News Points to a Complex, Unfinished Global Policy Landscape
This week’s crypto regulation news reflects the growing divide between enforcement-heavy and market-friendly approaches across jurisdictions.
Trump’s rollback of the IRS DeFi rule and Atkins’ confirmation as SEC chair suggest a more crypto-friendly U.S. stance may be on the horizon—at least for now.
Meanwhile, global players like Ukraine are tightening their frameworks to both legitimize and tax the digital economy.
What’s clear is that regulatory certainty remains elusive, but the stakes are only getting higher.
For crypto entrepreneurs, investors, and policymakers, the next few months will be essential in shaping what comes next.
