US Treasury Officially Scraps Crypto Broker Reporting Rules After Congressional Vote

Key Points

1. The US Treasury removed crypto broker reporting rules, including Form requirements for brokers to report users’ digital asset transactions to the IRS.

2. Senator Ted Cruz led the repeal, arguing the rule was government overreach that would stifle cryptocurrency innovation and push development overseas.

3. The repeal is projected to cost the government nearly $4 billion over ten years in lost tax revenue, but lawmakers prioritized privacy and reducing excessive custody of user funds.

4. The White House supported the repeal, calling the original rule an '11th hour attack on the crypto community' by the Biden administration.

5. The Treasury Department also announced exemptions for banks, and the SEC began revising the controversial SAB 121 accounting bulletin, further indicating regulatory shifts favoring crypto.