- U.S. Treasury revoked DeFi “broker” rule, ending reporting mandates for platforms like Uniswap. Congress repealed it; Trump signed the reversal.
- DeFi users still self-report taxable gains to the IRS. Platforms no longer send automated transaction data to tax authorities.
The US Treasury Department has formally rescinded a tax rule that classified decentralized finance (DeFi) exchanges as “brokers.” This rule, published in December 2024 under the Biden administration, required platforms like Uniswap and PancakeSwap to collect user data and report cryptocurrency transactions to the IRS. After taking effect in February 2025, the rule faced criticism for its technical impracticality.
In March, Congress voted to repeal the regulation. President Donald Trump signed the reversal into law on April 11. The Treasury now confirms the rule holds no legal standing. Regulatory texts revert to their pre-February wording. DeFi platforms no longer need to act as tax informants.
DeFi users remain responsible for reporting taxable gains. The change means the IRS will no longer receive automated transaction reports from platforms. It must rely on individual disclosures. For decentralized protocol developers, this reduces compliance costs and avoids penalties for technical reporting failures.
The repealed rule attempted to treat autonomous software as human entities. Its withdrawal acknowledges that smart contracts cannot perform traditional broker functions. Legal experts note this preserves DeFi’s non-custodial nature. While regulatory challenges persist, the correction relieves immediate pressure on blockchain innovators.
“Pursuant to the CRA (Congressional Review Act), any rule that takes effect and later is made of no force or effect by enactment of a joint resolution shall be treated as though such rule had never taken effect. Accordingly, the Treasury Department and the IRS are reverting the text of the section 6045 regulations back to the text that was in effect immediately prior to the effective date of the Final Rule.”
This process reflects a practical adjustment. Lawmakers recognized the original rule’s incompatibility with decentralized technology. The Treasury will now explore alternative approaches to oversee crypto tax activities without imposing centralized models on decentralized infrastructure.
