Catenaa, Friday, July 11, 2025- The US Treasury Department and Internal Revenue Service on Thursday repealed a controversial rule that required decentralized crypto platforms to report user transaction data, ending years of regulatory uncertainty and industry pushback.
The rule, first introduced under the Biden administration in 2021, aimed to expand the definition of a “broker” to include decentralized finance (DeFi) protocols, forcing non-custodial services to collect customer names, addresses, and tax-related data. Critics argued the requirement was unenforceable and posed serious risks to user privacy.
Originally passed as part of the Infrastructure Investment and Jobs Act, the rule was refined in late 2024 to exclude crypto miners and node operators.
However, it still applied to DeFi brokers, who said their platforms could not technically comply due to their autonomous, code-based nature.
In January, Senator Ted Cruz introduced a Congressional Review Act (CRA) resolution to strike down the regulation. Both chambers of Congress passed the resolution in March, and President Donald Trump signed it into law on April 11.
Thursday’s move by Treasury and the IRS now formally removes the rule from the Code of Federal Regulations.
Treasury confirmed that “this final rule has no legal force or effect” and said all regulatory text would revert to pre-2021 standards.
Industry leaders welcomed the repeal, calling it a win for DeFi innovation and individual privacy.
