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ARTICLE · 06 AUGUST 2025

Treasury Revokes Rule Requiring Decentralized Finance (DEFi) Reporting

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On December 30, 2024, the Department of the Treasury (the "Department") finalized regulations regarding information reporting by brokers who operate decentralized finance (DeFi) platforms in T.D. 10021.

United StatesTechnology
Caroline Lafourcade
Caroline Lafourcade
Leon H. Rittenberg III
Leon H. Rittenberg III
Kevin Naccari, Jr.
Kevin Naccari, Jr.
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On December 30, 2024, the Department of the Treasury (the "Department") finalized regulations regarding information reporting by brokers who operate decentralized finance (DeFi) platforms in T.D. 10021. Those regulations required brokers who provide front-end services in DeFi transactions to file information returns and furnish payee statements reporting gross proceeds on dispositions of digital assets effected for customers in certain sale or exchange transactions. Transactions involving wrapping and unwrapping, liquidity providers, staking, lending, short sales, and notional principal contracts, however, were excepted from the reporting requirements. The newly created Form 1099-DA would have been required for all sales and exchanges subject to the new reporting requirements beginning January 1, 2025. Critics of the new rule argued that the reporting requirements were cumbersome and would harm the American cryptocurrency market.

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