U.S. Treasury Withdraws Crypto Broker Reporting Rule
- U.S. Treasury rescinds crypto broker rule impacting DeFi.
- Major tokens used in DeFi affected.
- Centralized exchanges remain under reporting obligations.
U.S. Treasury has rescinded the cryptocurrency broker reporting rule targeting DeFi. Signed by President Trump on April 10, 2025, this action provides regulatory relief to the digital asset industry.
April’s repeal of the crypto broker reporting rule signals a significant shift in regulatory approaches and provides relief to DeFi participants.
Rule Withdrawal and Impact
The U.S. Treasury Department has officially withdrawn the cryptocurrency broker reporting rule. This action, signed by President Trump, impacts participants in decentralized finance, removing regulatory obligations before they took effect in January 2027.
The rule’s rescission provides a lasting regulatory reprieve for DeFi protocols and liquidity providers. However, centralized exchanges must still comply with the revised 1099-DA reporting mandate from January 2025.
The repeal means no direct financial inflows or outflows occur, as it primarily offers regulatory easement. However, DeFi tokens like ETH, BTC, and governance tokens are positively impacted due to lifted compliance burdens.
“With its passage, this law now prohibits any future Administration from issuing a substantially similar rule, providing lasting relief for the digital asset industry.” — Mike Carey, U.S. Representative
Immediate market reactions were absent due to the rule being repealed before its enforcement. However, the decision is a strong indication of the regulatory landscape adapting favorably for decentralized applications.
As regulatory pressures lift, DeFi protocols can operate without impending compliance threats. Historical trends show regulatory changes significantly impact migration and jurisdictional positioning within digital finance. Nonetheless, caution remains as centralized exchanges still face reporting requirements.
