US Treasury Officially Scraps Crypto Broker Reporting Rules After Congressional Vote

The US Treasury Department has formally revoked crypto broker reporting requirements, including Form 1099-DA, following a Congressional vote under the Congressional Review Act. The rule, initially published in December 2024, would have compelled DeFi platforms and other crypto brokers to report user transactions to the IRS.

Republicans successfully challenged the Biden-era regulation, nullifying it under Public Law 119-5. The Treasury will revert to previous guidelines exempting entities focused solely on blockchain validation or hardware wallet sales from broker obligations.

This regulatory reversal removes significant compliance burdens for decentralized finance participants while creating clearer operational boundaries for crypto intermediaries. Market observers anticipate reduced friction for institutional adoption as reporting complexities diminish.