U.S. Treasury officially removes IRS controversial Biden-era on DeFi

Key Points

1. The U.S. Treasury Department eliminated the DeFi broker reporting rules on June 10, which mandated DeFi platforms to provide IRS 1099-DA forms for all user transactions.

2. The repeal followed earlier legislative action under the Congressional Review Act, with Congress overturning the rule and President Donald Trump signing the bill in April.

3. DeFi platforms are now exempt from compliance requirements such as know-your-customer (KYC) rules and transaction reporting, while centralized exchanges remain obligated to issue 1099-DA forms.

4. Industry leaders, including DeFi Education Fund CEO Miller Whitehouse-Levine, viewed the repealed rule as infringing on user privacy and stifling DeFi innovation.

5. Experts warned that overly burdensome regulations could drive DeFi innovation overseas, highlighting the significance of the repeal for the industry.