The IRS has officially rescinded a controversial rule that would have imposed traditional broker reporting requirements on decentralized finance (DeFi) platforms. Initially adopted in December during the Biden administration, the rule faced immediate backlash from crypto advocates who argued it could potentially stifle the DeFi market in the U.S. A congressional resolution to repeal the rule received bipartisan support and was signed into law by President Trump in April 2025. This recent IRS announcement confirms that the rule, which would have necessitated DeFi platforms to collect user identities similar to conventional brokerages, has been eliminated from the tax code. The change is seen as a victory for the crypto industry, preserving user anonymity—a key feature of DeFi systems. The Treasury Department's memo clarified that this repeal effectively reverts the IRS's definition of brokers back to previous interpretations that do not affect DeFi platforms, thereby maintaining the industry's operational integrity.

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