Core Event
The U.S. Treasury Department and the IRS jointly announced on July 11 the permanent repeal of the (Digital Asset Broker Reporting Rules), relieving DeFi platforms of the obligation to collect user identities, transaction records, and to send 1099 tax forms, marking a fundamental shift in the U.S. regulatory logic toward decentralized finance.
Policy Reversal: From Regulatory Strangulation to Innovative Inclusion
Historical Context
Policy Origin: This rule was introduced by the Biden administration at the end of 2024, attempting to impose the compliance framework of traditional securities brokers on DeFi, triggering industry outcry over 'unconstitutionality' and 'technical infeasibility'.
Key Game: Institutions like a16z and Coinbase, along with Republican legislators, cited (Congressional Review Act) to promote the repeal in Congress under the pretext of 'invasion of privacy' and 'stifling innovation', ultimately achieving Trump's signature.
Deep Significance: The Treasury acknowledges that 'non-custodial agreements cannot bear intermediary responsibilities', effectively declaring that the logic of code governance has received official endorsement.
Triple Market Impact
Reconstruction of the DeFi Ecosystem
Annual compliance cost savings exceed $800,000 (including system development and legal expenses);
The influx of domestic users in the U.S. has driven a 30% monthly increase in traffic for platforms like Uniswap.
Protocols like MakerDAO are accelerating the upgrade of RWA collateral.
Rebalancing of participant rights
Retail on-chain trading is exempt from identity binding; tax compliance follows the principle of 'taxation on actual gains';
Institutional funds are entering the market rapidly, with BlackRock's Bitcoin ETF achieving a record net inflow of $2.3 billion in a single week.
Global Restructuring
Combining the (CLARITY Act) exemption clause, the U.S. establishes a 'precise regulation + innovation sandbox' system;
The European platform dYdX saw a 12% weekly drop in average daily trading volume, with funds migrating to compliant entities in New York.
Risk Warning
Unexploded Bomb One: SEC Regulatory Arbitrage
Proposed amendments to (custody rules) allowing hedge funds to self-custody assets, which could weaken the security of retail custody.
Unexploded Bomb Two: Liquidity Anomalies
Coinbase currently has a 30,000 ETH institutional sell order (approximately $90 million);
Meme coin derivatives saw a surge in open interest, with low-leverage short positions hiding the risk of a short squeeze.
Historical Reflection: After the approval of the spot ETF in 2023, Bitcoin corrected by 35%; caution is warranted to avoid a repeat scenario.
Strategic Allocation Framework
Asset Priority Matrix
The core logic of the category represents compliant DeFi user influx + valuation recovery; institutional asset ETFs for UNI, MKR increase holdings + reserve asset expectations for BTC, ETH political narrative policy relevance POL.
Operational Discipline
After BTC surpasses $117,500, take profits in batches while retaining 50% of the base position;
Allocate gold ETFs (GLD) or volatility derivatives to hedge tail risks.
The institutional turning point has arrived
This policy reversal not only abolishes a single rule but also marks a new era of crypto regulation transitioning from 'fear suppression' to 'institutional confidence'. True winners must remember:
Compliance is not the enemy of innovation; disorder is the shackle. When regulation recedes, self-discipline in freedom is the ultimate test.
The Daily Lesson of the Tangle: Kneel three times upon waking to add a zero to your account! Stay up late, licking the screen and following those who are tangled!!! Wealth freedom Morse code is guaranteed!