CMC News

IRS Officially Removes Anti-DeFi Broker Rule From Federal Tax Code

The IRS formally eliminated controversial DeFi broker reporting requirements from the U.S. tax code on Thursday.

A congressional resolution repealing the rule passed both chambers with bipartisan support before Trump signed it in April.

The rule would have forced DeFi platforms to collect and report user information like traditional brokers.

#Crypto industry leaders argued that automated DeFi protocols couldn't comply with stringent reporting designed for human intermediaries.

The measure threatened DeFi's core anonymity features by requiring customer identification from all users.

A Treasury Department memo confirmed the bureaucratic elimination occurred on June 17 but was announced on Thursday.

The Biden administration originally proposed the rule in 2023 but faced immediate industry opposition over compliance impossibility.

#DeFi platforms can now operate without traditional brokerage reporting requirements under the reverted IRS definitions.