The U.S. Treasury Department has abolished the IRS reporting rules for DeFi platforms, marking a significant compliance victory for the industry.
The U.S. Treasury Department's repeal of the Biden-era DeFi reporting rule means that DeFi platforms are no longer required to generate IRS 1099-DA forms for user transactions. This decision brings a significant victory in compliance for the DeFi industry, lifting the compliance burden faced by decentralized platforms and ensuring that similar rules cannot be easily implemented in the future. Although the compliance environment for DeFi platforms has been relaxed, DeFi users still need to report their gains and losses and track their own trading data.