What specific standards or benchmarks should companies be aware of to remain compliant under the new rules?

Understanding the Repeal of the IRS DeFi Broker Rule

In April 2025, a significant development took place in the cryptocurrency space as President Donald Trump signed a bipartisan bill into law, repealing an IRS rule that would have classified certain cryptocurrency platforms as brokers. This move has far-reaching implications for decentralized finance (DeFi) platforms and the broader crypto industry.

The Context: IRS Rule and Industry Opposition

The now-repealed IRS rule, finalized in December 2024, aimed to expand the definition of "broker" to include DeFi platforms and non-custodial digital asset services. This expansion was met with strong opposition from industry stakeholders who argued that such compliance demands would hinder innovation, burden participants with extensive reporting requirements, and raise privacy concerns.

Key Facts About the Repeal

1. Bipartisan Support: The repeal of the IRS DeFi broker rule received bipartisan support in both the Senate and House of Representatives.

2. Congressional Review Act (CRA): Senator Ted Cruz's introduction of a Congressional Review Act resolution played a pivotal role in overturning the controversial rule.

3. Impact on DeFi: The repeal alleviates compliance challenges for DeFi platforms, allowing them to focus on developing new financial products without burdensome reporting requirements.

4. User Privacy: With no mandatory data collection required by DeFi protocols under this new legislation, user privacy is better preserved.

5. Taxation Obligations: While crypto transactions are not exempt from taxation post-repeal, users must still report income from digital assets on their tax returns.

Recent Developments & Potential Fallout

The signing of this bipartisan bill into law signifies a shift in U.S. cryptocurrency regulation towards supporting innovation while maintaining user privacy. This change is expected to lead to increased innovation within the sector and reinforce trust in decentralized protocols.

Compliance Standards for Companies Under New Crypto Rules:

• No Mandatory Data Collection: Companies operating in DeFi are no longer obligated to collect or report sensitive user information or transaction data to tax authorities.

• Compliance Burden Reduction: Removal of extensive reporting requirements eases compliance challenges that could have stifled innovation within these companies.

• User Privacy Preservation: By not needing to store personal information, companies uphold decentralization principles while ensuring permissionless access for users.

• Taxation Obligations: Users remain responsible for reporting crypto income accurately on their tax returns post-repeal.

By adhering to these standards set forth by recent legislative changes, companies can navigate regulatory shifts effectively while fostering greater innovation and adoption within the digital asset space.

In conclusion,

This article provides insights into how recent legislative changes impact compliance standards for companies operating under new crypto rules following the repeal of the controversial IRS DeFi broker classification[1][3][4].