US Treasury Scraps Crypto Broker Reporting Rules for DeFi Platforms

The US Treasury Department has officially withdrawn a controversial rule that would have mandated decentralized cryptocurrency exchanges (DeFi) to report user transactions to the IRS. The regulation, known as TD 10021, sought to classify DeFi platforms as brokers akin to traditional stockbrokers. Congress overturned the measure under the Congressional Review Act, with President Trump signing the repeal into law in April 2025.

Crypto advocates celebrated the decision, arguing that DeFi platforms—operated by smart contracts rather than centralized entities—could not feasibly comply with such reporting requirements. The IRS confirmed the rule now holds "no legal force or effect," reverting to pre-existing tax code provisions. This reprieve alleviates immediate compliance burdens for DeFi protocols and non-custodial wallet providers.