U.S. Treasury and IRS Repeal Controversial Crypto Broker Rule
The U.S. Treasury Department and Internal Revenue Service have officially repealed a widely criticized crypto tax rule that would have required decentralized exchanges and other non-custodial platforms to report user transaction data to the IRS.
The rule, introduced under the 2021 Infrastructure Investment and Jobs Act, aimed to increase financial transparency by classifying a broad range of crypto participants as “brokers.” Critics argued the rule was unworkable for decentralized platforms that don’t have access to customer identities, and raised serious privacy and innovation concerns across the crypto sector.
The IRS finalized the rule in late 2024, targeting so-called “DeFi brokers,” including smart contracts and other non-custodial services. Opponents, including lawmakers and crypto industry leaders, said it could not be enforced without fundamentally altering the nature of decentralized technology.
In a statement issued Thursday, the Treasury confirmed the rule is now void under the Congressional Review Act (CRA), and that all related language will be removed from federal regulations.
Senator Ted Cruz led the CRA effort to overturn the rule earlier this year. Congress voted to repeal it in March, and President Donald Trump signed the resolution into law on April 11.
While the Treasury had attempted to revise the definition of a broker to exclude miners and node operators, the inclusion of DeFi platforms drew sharp backlash and helped fuel the repeal.
With the rule now officially repealed, crypto advocates say the decision marks a key win for decentralized finance in the U.S.—at least for now.
Featured image from: 99bitcoins.com