- Repeal of DeFi broker rule impacts compliance and innovation.
- Reduces regulatory burdens on DeFi platforms.
- Boosts innovation and market confidence in DeFi sector.
The U.S. Treasury, in collaboration with the IRS, officially eliminated the crypto broker reporting rule for decentralized finance platforms. This repeal, approved by Congress and signed by President Trump, took place in April 2025.
The rollback aims to foster a more innovation-friendly environment by reducing compliance costs and regulatory uncertainty in the DeFi sector.
Regulatory Impact on DeFi Platforms
The U.S. Department of the Treasury and IRS repealed the crypto broker reporting requirements under the Congressional Review Act. Aviva Aron-Dine, acting Assistant Secretary for Tax Policy, supports streamlined reporting aligned with traditional assets, closing the tax gap. Congress and President Trump enacted the repeal, impacting compliant taxpayers and fostering growth.
Aviva Aron-Dine, Acting Assistant Secretary for Tax Policy, U.S. Treasury, said, “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.” source
This removal favors DeFi developers by minimizing compliance expenses and encourages growth. Ethereum and other associated tokens could experience growth in Total Value Locked (TVL) as platforms face fewer regulatory hurdles. Crypto advocates argue that DeFi’s decentralized nature conflicts with traditional reporting practices, thus favoring the repeal.
Despite the repeal, the Treasury remains vigilant on DeFi’s regulatory landscape. The decision follows legislative trends easing excessive controls, with historical rollbacks benefiting governance tokens like UNI and AAVE. Innovation opportunities may now expand as regulatory barriers shrink.
Future regulations could still emerge, considering DeFi’s growth potential and varying global regulatory frameworks. The market is poised for enhanced liquidity and participation due to the reduction in compliance demands and improved innovation prospects.
