IRS Formally Removes Anti-DeFi Broker Rule From Tax Code

The IRS has officially scrapped a contentious DeFi-focused regulation that would have imposed traditional broker reporting requirements on decentralized finance platforms. The rule, initially adopted in December under the Biden administration, was repealed through a bipartisan congressional resolution signed into law by President TRUMP in April.

The Treasury Department and IRS finalized the rule's elimination on June 17, though the announcement was only made public this week. This marks the first time a cryptocurrency-related bill has been enacted into U.S. law, signaling a potential shift in regulatory approach toward decentralized financial systems.

Had it taken effect, the rule WOULD have forced DeFi platforms to collect and report user transaction data akin to conventional brokerages—a requirement critics argued was fundamentally incompatible with decentralized systems' architecture. The repeal represents a significant victory for the DeFi sector amid ongoing regulatory scrutiny.