On July 10, 2025, the U.S. Treasury Department revoked a rule requiring decentralized cryptocurrency exchanges to report customer transaction data to the IRS. This decision may significantly impact the development of decentralized finance (DeFi).
Revocation of Treasury Reporting Rule
The U.S. Treasury has officially rescinded a regulation requiring decentralized exchanges to provide customer data to the IRS, aligning with Congressional actions. With the regulation lifted, exchanges are relieved from burdensome compliance demands, enhancing their viability and attractiveness.
Impact on Ethereum and Market
CoinMarketCap reports that Ethereum (ETH) is valued at $2,770.67 with a significant market cap. Recent trading volume reached 29,345,657,768.91, up 44.95%. ETH's price has surged 77.12% over the past 90 days, reflecting dynamic market conditions. These changes suggest favorable growth conditions for DeFi following the repeal of regulations.
Potential Consequences for Centralized Exchanges
The repeal of DeFi broker regulations eases compliance burdens for decentralized exchanges, but may lead to increased scrutiny for centralized exchanges in the future. Policymakers may aim for stricter regulations for centralized platforms by 2026.
The revocation of reporting requirements for decentralized exchanges marks a significant step forward for the DeFi sector, potentially fostering innovations in the cryptocurrency space while necessitating careful monitoring of investor protections.
