The IRS rule, designed to enforce crypto tax compliance, faced backlash from the DeFi industry due to its technical challenges.
On Thursday, President Donald Trump signed a resolution reversing an IRS rule. The rule would have required certain crypto brokers, including decentralized finance (DeFi) platforms, to report customer transactions to the tax agency.
The rule, scheduled to take effect in 2026, aimed to ensure tax compliance for crypto users but faced backlash from the industry.
The measure, part of the Biden administration’s efforts to strengthen crypto tax enforcement, was criticised for being technically difficult to follow and legally problematic. DeFi platforms do not act as intermediaries or possess user identities, which made the rule unworkable, according to industry leaders.
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