The US Treasury Department has canceled the contentious reporting rules for decentralized exchanges, releasing them from the obligation to submit user data to US tax authorities.
Cancellation of Rules: Reasons and Implications
The rules, known as TD 10021, required DeFi platforms to be treated like brokers and to report user transactions to the IRS. These rules were overturned after Congress voted to cancel them, and the legislation was signed into law by President Donald Trump in April 2025. The IRS confirmed that the rules no longer have legal force and should be treated as if they 'had never taken effect.'
Crypto Experts' Opinions
Many crypto advocates argued that DeFi platforms cannot report user data as they are run by smart contracts, not traditional businesses. They stated that the rule was unworkable and could negatively affect innovation in the crypto space.
Future of Reporting Rules for the Crypto Industry
The IRS has reverted to the older version of the law that was in place before the crypto broker rule. This means that individuals who merely help run blockchains or develop wallet software are not considered brokers and do not need to report user transactions to the IRS. However, new rules may be established in the future as the crypto industry continues to evolve.
The cancellation of the reporting rules opens new opportunities for DeFi platforms and raises questions about the future of regulation in the crypto industry. Leading experts continue to monitor changes and their potential impact on the market.
