The US Treasury Department has officially cancelled a contentious crypto broker reporting rule that would have required decentralized cryptocurrency exchanges, or DeFi platforms, to submit user transaction data to the IRS.
These rules were aimed at treating DeFi platforms like brokers, similar to how stockbrokers report financial activity. However, the rule has now been scrapped after Congress voted to overturn it.
As per the filing, the rule, known as TD 10021 and created under Section 6045 of the tax code, was rejected under the Congressional Review Act. Both the House and Senate passed a resolution to cancel the rule, and President Donald Trump signed the decision into law in April 2025. Because of this, the IRS has officially removed the rule from the tax code.
Many crypto advocates argued that DeFi platforms can’t report user data because they are run by smart contracts, not traditional businesses with employees. They said the rule was unworkable and would hurt innovation in the crypto space.
The IRS acknowledged that, under the Congressional Review Act, the rule has “no legal force or effect” and must be treated as if it “had never taken effect.” As a result, DeFi platforms and wallet providers are no longer required to collect or share customer transaction data with the IRS—for now.
The IRS has brought back the older version of the law that was in place before the crypto broker rule. This means people who only help run blockchains or those who create or sell wallet software are not considered brokers right now. So, they don’t have to report user transactions to the IRS. However, new rules could be made in the future as the crypto industry continues to grow and change.
Also Read: Crypto Executives Hail SEC Withdrawing Gensler-Era Proposed Rules
