U.S. Treasury Revokes 2024 Crypto Broker Reporting Rule, Easing Compliance for Exchanges

The U.S. Treasury Department and the Internal Revenue Service (IRS) have officially revoked the 2024 crypto broker reporting rule, providing immediate compliance relief for exchanges and decentralized finance (DeFi) platforms across the nation. This regulatory change signals a shift towards a more favorable environment for digital assets, potentially bolstering the global competitiveness of U.S.-based exchanges and DeFi platforms.

The rule, which was set to take effect in 2027, required crypto exchanges and DeFi platforms to report specific financial transactions to the IRS. However, the rule faced significant challenges, particularly for decentralized models that lack centralized control and oversight. The revocation of this rule under the Congressional Review Act means that the regulation no longer has legal force or effect, effectively removing a substantial compliance burden from U.S. crypto intermediaries.

Financially, this regulatory change reduces costs and operational complexities for decentralized platforms. Politically, it reflects a more crypto-friendly stance from the U.S. government, easing tensions between innovators and regulators within the blockchain community. The decision to revoke the rule was finalized on July 10, 2025, following widespread criticism and opposition from industry stakeholders who argued that the reporting requirements were impractical and invasive.

The repeal of the rule is expected to increase confidence from institutions engaging with U.S.-based crypto services. Historical trends suggest that regulatory clarity often leads to positive market responses, potentially attracting more capital to key assets like Bitcoin (BTC), Ethereum (ETH), and DeFi tokens. This move underscores the U.S. Treasury's willingness to engage with industry feedback and adapt regulatory frameworks to better suit the evolving landscape of digital assets.

By listening to industry concerns and adjusting its policies accordingly, the Treasury Department has demonstrated a commitment to fostering a balanced regulatory environment that supports both innovation and compliance. This decision is likely to set a precedent for future regulatory actions, encouraging a more collaborative approach between regulators and industry stakeholders. The revocation of the crypto broker reporting rule is a clear indication that the U.S. government is taking a more nuanced approach to regulating the cryptocurrency industry, potentially fostering innovation and growth within the sector.