US Treasury Repeals Crypto Reporting Rule Boosting DeFi Growth

The US Treasury Department and the Internal Revenue Service (IRS) have repealed a controversial rule that required decentralized exchanges and other crypto protocols to report customer transaction information for tax purposes. This decision marks the end of a prolonged debate over the rule, which was criticized by crypto advocates for its privacy and feasibility concerns. The rule was seen as a threat to the growth of the decentralized finance (DeFi) sector and the broader crypto industry in the US.

The repeal of this rule is a significant development for the crypto industry. It addresses the concerns raised by crypto advocates who argued that the rule was unenforceable and would stifle innovation in the DeFi sector. The rule required decentralized exchanges and other crypto protocols to report customer transaction information, which was deemed impractical and invasive by many in the industry. The repeal of this rule is expected to foster a more favorable environment for the growth of the DeFi sector and the broader crypto industry in the US.

This move by the Treasury Department and the IRS is likely to be welcomed by the crypto community, as it removes a significant regulatory hurdle that had been hindering the growth of the DeFi sector. The repeal of the rule is expected to encourage more innovation and investment in the crypto industry, as it provides greater clarity and certainty for decentralized exchanges and other crypto protocols. This development is a positive step towards creating a more supportive regulatory environment for the crypto industry in the US.