U.S. Treasury officially removed the IRS's rule for DeFi transaction reporting.U.S. Treasury officially removed the IRS's rule for DeFi transaction reporting.

U.S. Treasury officially removes IRS controversial Biden-era on DeFi

2 min read

DeFi platforms secured a major win in compliance after the U.S. Treasury officially removed the controversial Biden-era IRS reporting rule.

DeFi platforms got a major win regarding compliance with the Internal Revenue Service. On Thursday, June 10, the U.S. Treasury Department officially eliminated the DeFi broker reporting rules. The controversial Biden-era rule required DeFi platforms to issue IRS 1099‑DA forms for all user transactions.

This repeal was the result of earlier legislative action. Earlier this year, the U.S. Congress repealed the rule under the Congressional Review Act, and President Donald Trump signed the bill in April. DeFi-friendly Congressmen viewed the rule as a burden on DeFi platforms and contrary to the principles of decentralization.

How new IRS reporting rules will work

DeFi platforms are now exempt from these compliance requirements, which include know your customer rules and transaction reporting. Moreover, the Congressional Review Act mechanism ensures that the IRS cannot issue a substantially similar rule in the future unless Congress specifically authorizes it.

The repeal only applies to non-custodial DeFi applications. Centralized exchanges remain obligated to issue 1099‑DA forms. Additionally, all DeFi users still have the obligation to report their own gains and losses to the IRS. They also have to track their activity independently, as the IRS will no longer receive automatic transaction data.

The DeFi industry saw this repeal as a major win. For instance, DeFi Education Fund CEO Miller Whitehouse-Levine viewed the rule as infringing on user privacy and undermining innovation in DeFi. Other experts warned that burdensome rules would push DeFi innovation overseas.

DeFi protocols are decentralized software protocols that theoretically run on their own. They often do not have legal entities that represent them, which makes regulatory and reporting requirements difficult for them to comply with. However, there are also centralized projects that use the DeFi name for marketing purposes.

Market Opportunity
DeFi Logo
DeFi Price(DEFI)
$0.000345
$0.000345$0.000345
-2.26%
USD
DeFi (DEFI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Tags:

You May Also Like

Water150 Unveils Historical Satra Brunn Well: The Original Source of 150 Years of Premium Quality Spring Water Hydration

Water150 Unveils Historical Satra Brunn Well: The Original Source of 150 Years of Premium Quality Spring Water Hydration

The post Water150 Unveils Historical Satra Brunn Well: The Original Source of 150 Years of Premium Quality Spring Water Hydration appeared on BitcoinEthereumNews.com. Water150, the project developed by the Longhouse Foundation to reserve access to premium spring water through a transparent, blockchain-based ecosystem of natural water springs, is excited to introduce its first natural water well, Satra Brunn.  The Sätra Brunn well is one of Sweden’s oldest and best-preserved natural spring water wells, located in a 324-year-old Swedish village. Every water source added to the network will be measured according to the pedigree and based on the foundations of the historically reliable Satra Brunn natural spring, a well that has endured since the 18th century.   The Satra Brunn well secures the first 66 million liters of the annually replenished mineral water supply, starting in January 2027, for the next 150 years. Each liter of water secured in the Satra Brunn well is fully backed by a corresponding Water150 token, issued on the Ethereum blockchain by the Longhouse Water S.A., a Luxembourg public limited liability company.  Hence, the first batch of 66 million Water150 tokens to enter circulation will fully back the annual supply from the Satra Brunn well.  The project uses blockchain technology as a barrierless and transparent ecosystem to connect users to naturally filtered, high-quality, and sustainably managed drinking water per year for at least 150 years, starting in 2027. The amount of Water150 tokens in circulation is a verifiable measure of the volume of annual water flow available within the ecosystem, audited by independent third parties. The W150 token is one of the first real-world asset (RWA) utility tokens to get the full approval of the European Securities and Markets Authority (ESMA), the body responsible for the Markets in Crypto-Assets Regulation (MiCAR), a cryptocurrency regulatory standard recognized and adopted throughout Europe. Water150 is building a global network of 1,000 premium mineral water sources like Satra Brunn, managed according to the high…
Share
BitcoinEthereumNews2025/09/19 19:41
Amazon signs AI and cloud partnership to accelerate growth

Amazon signs AI and cloud partnership to accelerate growth

Prosus and Amazon have signed a multi-year deal with AWS to consolidate cloud and AI contracts and save costs.
Share
Cryptopolitan2026/02/04 18:05
Senate Democrats Forge Ahead with U.S. Crypto Regulation Efforts

Senate Democrats Forge Ahead with U.S. Crypto Regulation Efforts

The long-stalled CLARITY Act, designed to regulate the U.S. cryptocurrency market, is back in the spotlight as Senate Democrats quietly resume discussions.Continue
Share
Coinstats2026/02/04 18:08