The US Treasury recently repealed a rule known as TD 10021, which mandated both centralized and decentralized crypto platforms to report user trading data to the IRS. This decision came in response to pressure from various groups and lawmakers.
Repeal of TD 10021
Rules under TD 10021 required decentralized finance (DeFi) protocols to report customer activity, which were repealed by Congress. The rule, enacted under the 2021 Infrastructure Investment and Jobs Act, was scheduled to take effect in 2025, but lawmakers opposed its application to DeFi.
Reactions and Consequences of the Repeal
The repeal was driven by industry reaction, claiming decentralized platforms cannot comply with requirements aimed at centralized exchanges. Miller Whitehouse-Levine, CEO of the DeFi Education Fund, stated, "You can’t report data you don’t have." The repeal was finalized after support in the Senate and House, with President Trump signing it into law on April 11.
Ongoing Oversight of the Crypto Industry
Despite the repeal, the Treasury remains active in monitoring the crypto sector. Throughout 2023 and 2024, it has imposed sanctions on players in Iran’s shadow banking networks and flagged North Korean-linked hackers suspected of laundering stolen crypto. This signals continued vigilance over illicit financial activities.
The repeal of TD 10021 signifies Congress's intent to distinguish between decentralized financial technologies and traditional brokerage firms, while the Treasury continues its active role in regulating cryptocurrencies and international financial policy.
