On August 12, 2024 we posted IRS Releases Final Digital Asset Regs & New Draft of Form 1099-DA where we discussed that in IR-2024-178 dated June 28, 2024 The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations requiring custodial brokers to report sales and exchanges of digital assets, including cryptocurrency. These reporting requirements will help taxpayers to file accurate tax returns with respect to digital asset transactions, which are already subject to tax under current law.
Then on August 12, 2024 we posted TIGTA Releases Report Regarding Virtual Currency Tax Compliance Enforcement and How it Can Be Improved where we discussed that the Treasury Inspector General for Tax Administration (TIGTA) report, Virtual currency (or digital assets) has grown into a trillion-dollar industry that's been challenging for the IRS to enforce for tax compliance and that during Fiscal Years 2018 to 2023, IRS CI investigated 390 cases involving virtual currency/digital assets of which 224 were recommended for prosecution.
The IRS had updated its crypto tax reporting rule in December 2024, during the final weeks of the Biden administration, to clarify that decentralized finance (DeFi) platforms would also fall under these guidelines
Well now you can forget all that, as President Donald Trump signed into law a bill to overturn a revised rule from the Internal Revenue Service that expanded the definition of a broker to include decentralized cryptocurrency exchanges on April 10, 2025, according to a statement from the White House.
In March 2025 The Congressional Review Act Was
Invoked By Both Chambers Of Congress To Nullify
The IRS Revision, With Bipartisan Support.
The cryptocurrency industry strongly opposed the rule, arguing that DeFi exchanges, which operate without intermediaries and allow direct transactions on blockchain networks, could not comply due to their lack of user visibility.
Unlike centralized exchanges such as Coinbase and Kraken, DeFi platforms do not collect detailed user information, making it challenging to meet IRS reporting requirements.
Trump's decision aligns with his campaign promise to support the cryptocurrency industry. He had pledged to be a "crypto president" and actively courted support from the sector during his campaign. Since taking office, Trump has taken several steps to promote digital assets, including establishing a cryptocurrency working group and signing an executive order to create a federal bitcoin stockpile.
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