The U.S. Department of the Treasury has quietly withdrawn a controversial rule that was set to require all crypto platforms — both centralized and decentralized — to report user transaction data to the IRS starting in 2025.

This move comes as a major relief for the decentralized finance (DeFi) sector, whose representatives had long argued that such requirements are technically unfeasible in a permissionless environment.

❌ TD 10021 Is Dead — Trump Signed the Repeal

The repealed regulation, known as TD 10021 (RIN 1545-BR39), was based on Section 6045 of the U.S. Tax Code and was introduced through the 2021 Infrastructure Investment and Jobs Act. It aimed to broaden the definition of "broker" to include DeFi protocols and even front-end developers — even those with no access to user funds or identities.

Platforms would have been required to collect sensitive data like names, wallet addresses, and transaction volumes, and report it to the IRS using Form 1099-DA. The rule was scheduled for implementation in 2025 and full enforcement by 2026.

But early in 2025, resistance made its way to Congress. Lawmakers invoked the Congressional Review Act to overturn the rule — with a Senate vote of 70 to 28, followed by House approval. President Donald Trump signed the repeal on April 11, officially stopping the IRS plan before it could take effect.

🛑 DeFi Is Not Wall Street: Why Developers Pushed Back

DeFi protocol developers argued they simply could not report data they don’t have. “You can’t report data that doesn’t exist,” said Miller Whitehouse-Levine, CEO of the DeFi Education Fund.

Critics warned that the rule’s broad scope could have crippled open-source development in the U.S., pushed teams overseas, and stifled innovation. Even wallet interfaces and token aggregators — tools with no access to user funds — would have been affected.

⚖️ The IRS Rule Is Gone, But Treasury Isn’t Going Anywhere

While this specific rule has been rescinded, the U.S. Treasury is not walking away from crypto oversight. Under Scott Bessent’s leadership, the department remains active in areas tied to national security and illicit finance.

It has imposed sanctions on Iranian and North Korean hackers suspected of laundering stolen crypto and continues to engage in G7 discussions about a global minimum tax and international digital trade policy.

🔍 Summary

The repeal of TD 10021 is a win for decentralized technology and an acknowledgment that DeFi cannot be regulated like traditional brokerages. Platforms like Coinbase and Bin.ance US remain under scrutiny, but open-source projects and decentralized protocols — for now — have avoided impossible compliance demands.

Still, this doesn’t mean the Treasury or the IRS are stepping back. The broader debate between privacy and transparency in crypto is far from over.



#crypto , #Regulation , #defi , #IRS , #DonaldTrump

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