BREAKING: US Treasury Drops Crypto Broker Reporting Rules—What It Means for Your Portfolio

The US Treasury just axed controversial crypto broker reporting requirements—clearing a major regulatory hurdle for digital asset adoption.

Here's why it matters:

• No more IRS surveillance state for your Bitcoin transactions

• Institutional players get a green light to dive deeper into DeFi

• Compliance costs for exchanges could drop by millions (though let's be real—they'll probably just pocket the savings)

The move comes as the SEC struggles to keep pace with crypto innovation—while somehow still finding time to sue every blockchain project that dares to succeed. Freedom wins this round, but the regulatory chess game continues.

“Under the joint resolution and by operation of the CRA, this final rule has no legal force or effect,” the Treasury writes in a document scheduled to release Friday. “The Department of the Treasury (Treasury Department) and the IRS hereby remove this final rule from the Code of Federal Regulations (CFR) and revert the relevant text of the CFR back to the text that was in effect immediately prior to the effective date of this final rule.”

The MOVE is the latest in a series of pro-crypto initiatives passed by the US government. The approval of select crypto ETFS and review of more, as well as looser regulations over crypto oversight, are painting a brighter future for the digital assets industry in the US. Previously, the sector argued that the crypto broker reporting rules weren’t fair because DeFi exchanges couldn’t report customer transaction data because most don’t have physical staff to do so.

Donald Trump’s crypto promises remain speculative, but the potential for significant change is evident. The cryptocurrency world continues to watch closely as regulatory uncertainty gradually gives way to more defined frameworks. Security risks and market volatility may be addressed through these emerging regulatory approaches. Ultimately, the US could soon become a haven for crypto investors to trade without judgement or pressure from regulators.