The IRS has officially removed a contentious rule from the federal tax code that would have required decentralized finance (DeFi) platforms to report financial data like traditional brokers. This DeFi broker rule was introduced during the final weeks of former President Biden's administration but never took effect. It was repealed following bipartisan support in Congress, with President Trump signing the resolution, marking a significant moment for crypto legislation. The Treasury Department's memo revealed that the rule was eliminated on June 17, with the announcement made public recently. Industry leaders had strongly opposed the proposed rule, arguing it could jeopardize the DeFi sector in the U.S. DeFi operates on automated code without human intermediaries, making compliance with traditional reporting standards impractical. Additionally, the rule would have compromised user anonymity by requiring DeFi platforms to collect personal information, which contradicts the privacy that on-chain transactions offer. The IRS will revert to its previous definition of brokers, excluding DeFi protocols. Read more AI-generated news on: https://app.chaingpt.org/news