BTCC / BTCC Square / Global Cryptocurrency /
IRS Drops Controversial Rule Targeting Decentralized Exchanges

IRS Drops Controversial Rule Targeting Decentralized Exchanges

Published:
2025-07-10 20:34:02
4
3
BTCCSquare news:

The U.S. Treasury and IRS have formally withdrawn a contentious crypto broker rule that would have required decentralized exchanges to report user transactions. The reversal follows a Congressional joint resolution signed into law, nullifying the regulation's legal standing.

Initially finalized in December 2024, the rule aimed to treat DeFi platforms like traditional brokers, mandating FORM 1099-DA filings for digital asset transactions. Implementation sparked immediate backlash from crypto industry participants who argued decentralized systems lack the infrastructure for such reporting.

The resolution marks a significant regulatory retreat after months of industry pressure. Market observers note the decision preserves operational flexibility for DeFi protocols while eliminating a potential compliance burden that could have stifled innovation.

|Square

Get the BTCC app to start your crypto journey

Get started today Scan to join our 100M+ users