U.S. Treasury officially removes IRS controversial Biden-era on DeFi
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 Earlier this year, the U.S. Congress repealed the rule under the Congressional Review Act, and President Donald Trump signed the bill in April.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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Anthropic has been profitable for two consecutive quarters ahead of its IPO
Anthropic has achieved positive adjusted operating profit for two consecutive quarters, with Q2 revenue surging 14-fold year-on-year to $11.5 billion and annualized revenue reaching $65 billion. The gross margin exceeds 80%. The company has chosen to list on Nasdaq, with a potential valuation of up to $2 trillion. Dramatically, the CEO has made a rare call to slow down AI development just before the IPO. Analysts believe that balancing safety concerns with commercial competition will become the core challenge.
Anthropic signs $13.7 billion computing power agreement with "Trump-linked company" Rum Group
Anthropic has signed a $13.7 billion, six-year computing power agreement with Rum Group. The core of the agreement is a data center under construction in Georgia. Rum Group was formerly the conservative video platform Rumble, whose early investors include current U.S. Vice President Vance.
Will the midterm elections cause the US stock market to crash? 75 years of history give an unexpected answer
Currently, with less than eight weeks until the midterm elections, one of the greatest uncertainties facing Wall Street is imminent. But will the reshuffling of power in Congress lead to a stock market crash? Looking back over 75 years of history, the answer is surprising, and ultimately leans toward optimism.
Crypto prices
More
