US Treasury Officially Scraps Crypto Broker Reporting Rules After Congressional Vote
The Treasury is removing the rule from the Code of Federal Regulations and reverting to the previous text, which excluded entities solely engaged in validating distributed ledger transactions or selling hardware for private key control from broker reporting requirements
Under Public Law 119-5 and the Congressional Review Act, the final rule has no legal force or effect and is considered null and void, as if it had never taken effect.
The Treasury is removing the rule from the Code of Federal Regulations and reverting to the previous text, which excluded entities solely engaged in validating distributed ledger transactions or selling hardware for private key control from broker reporting requirements.
Republicans in Congress successfully challenged the Biden-era rule that would have classified DeFi platforms as brokers, requiring extensive data collection and reporting obligations.
The Treasury estimated that billions in crypto-related taxes were going uncollected annually, but industry advocates argued that the requirements were technically impossible for decentralized platforms to implement.
