In July, the U.S. Treasury Department officially revoked the requirement for crypto brokers to report transactions to the IRS — a move following a congressional vote. The rollback of the “DeFi Broker Rule” was initiated by Senator Ted Cruz and Representative Mike Carey, and passed via the Congressional Review Act, effectively restoring the legal status quo to what it was before December 2024.
Congress estimates the rollback could cost the federal budget $4–4.5 billion over ten years. Yet innovation advocates argue the rules hindered progress, especially since many DeFi protocols are fundamentally incapable of collecting detailed user data.
Now, crypto platforms can breathe more freely: lower compliance costs, reduced risk of private data leaks, and a better chance of staying and scaling within the U.S. Tax obligations for users remain — the IRS still expects income to be declared, but without intermediaries in the middle.
In essence, this reversal signals that U.S. policy is ready to balance tax collection with preserving Web3 innovation leadership. It could mark the beginning of a new era for domestic startups and the DeFi ecosystem.
