The U.S. Treasury and IRS have repealed the crypto broker reporting rules for DeFi platforms, aimed at reducing regulatory burdens and fostering sector growth.
Impact of Repeal on DeFi Platforms
The repeal of crypto broker reporting requirements under the Congressional Review Act is designed to create a more innovation-friendly environment in DeFi. This decisive action, supported by Congress and signed by President Trump, took place in April 2025. Streamlining reporting aims to reduce compliance costs and regulatory uncertainty.
Expert Reactions
Aviva Aron-Dine, Acting Assistant Secretary for Tax Policy at the U.S. Treasury, emphasized that "aligning tax reporting requirements for digital assets with reporting for other assets will make filing easier and cheaper for compliant taxpayers while also helping close the tax gap." This repeal has positive implications for DeFi developers, allowing them to lower compliance costs. Associated tokens like UNI and AAVE may gain momentum as a result of fewer regulatory hurdles.
Future of DeFi Regulation
Despite the repeal, the Treasury remains vigilant on the DeFi regulatory landscape. Future regulations may emerge, considering the sector's growth potential and varying global regulatory frameworks. With reduced compliance demands and improved innovation prospects, the market can expect increased liquidity and participation.
The repeal of regulatory rules around brokers in DeFi opens new opportunities for growth and innovation in this rapidly evolving cryptocurrency sector.
