Donald Trump’s Historic Crypto Regulation Shift: Will Ethereum Price Hit $1600 as DeFi Gets Relief?

President Donald Trump signed a groundbreaking crypto-related bill into law in a first-of-its-kind move. The legislation repeals an IRS rule that would have forced DeFi platforms to comply with traditional broker-level tax reporting. With bipartisan support, the law eliminates a major hurdle that had threatened decentralized innovation across the U.S. The Ethereum ecosystem, being the backbone of DeFi protocols, could directly benefit from this change. Industry leaders are calling it a turning point for crypto regulation, while Ethereum price watchers are eyeing potential long-term gains as regulatory clouds begin to clear.

Trump Signs First-Ever Crypto Law

Donald Trump made crypto history by signing the first-ever crypto-specific bill into U.S. law. The bill repeals the controversial IRS “DeFi Broker Rule,” introduced during the Biden administration, which sought to impose tax reporting duties on decentralized platforms. The rule required DeFi projects to collect user data and transaction records, an operational nightmare for most decentralized protocols.

Senator Ted Cruz led the charge in the Senate, and the bill passed with overwhelming bipartisan support (70–28 in the Senate, post-March 11 House approval). Trump’s move was praised by industry leaders and political allies, including White House crypto advisor David Sacks, who called the IRS rule a threat to innovation.

🚨SCOOP: President Trump is expected to sign Congress’s joint resolution to overturn the IRS DeFi broker rule into law imminently, according to two people familiar with the plans.@SenTedCruz, who introduced the joint resolution in the Senate, is expected to be present at the…

— Eleanor Terrett (@EleanorTerrett) April 10, 2025

This legislative win is more than symbolic. It signals a major policy shift: The U.S. is stepping away from burdensome oversight and toward innovation-friendly crypto regulation. For Ethereum, the foundation of nearly all major DeFi platforms, this could translate into long-term growth, development freedom, and renewed investor confidence. Analysts and traders alike will be watching Ethereum price charts closely in the days ahead, as this law might just be the catalyst the DeFi sector has been waiting for.

Ethereum Price Analysis of April 11

The trading day of April 10th started with bearish momentum. RSI remained in oversold territory, causing ETH to dip and test support at $1583.34. At 12:45 UTC, a death cross on the MACD confirmed the downtrend, pushing the price below this support. By 15:45 UTC, RSI again showed oversold signals, prompting a bounce from a new support level at $1471.54. Soon after, a golden cross appeared, and ETH entered an upward channel. The recovery was gradual, supported by moderate trading volume through the evening.

Chart 1, analyzed by ShwetaCW, published on TradingView, April 11, 2025

The trading day of April 11th started with bullish momentum. At 11:15 UTC, another golden cross on the MACD pushed the price higher, signaling continued strength. According to Ethereum price prediction, if this bullish trend holds, ETH could reclaim $1583.34 as resistance or go above $1600. If not, a break below $1471.54 may open doors to sub-$1400 zones.

Trump’s Crypto Law Could Boost Ethereum and DeFi Coins

Donald Trump’s repeal of the IRS DeFi tax rule is more than politics, it’s a green light for Ethereum and the broader DeFi market. The new law reduces regulatory pressure, allowing DeFi protocols to grow without the fear of impractical tax enforcement. As the backbone of DeFi, Ethereum stands to benefit the most. This regulatory shift may renew investor confidence and long-term growth in the ecosystem. According to Ethereum price prediction models, ETH could reclaim $1600 soon, and if momentum continues, target $1750 next. However, a failure to hold above $1470 may signal short-term weakness.