The U.S. Department of Finance and Tax Authority officially nullified the reporting requirements for non-custodial service providers under strong industry pressure.
The prolonged legal confrontation between the U.S. government and the crypto asset community has officially concluded as the Department of Finance and Tax Authority (IRS) canceled the controversial "crypto asset broker" regulation. This regulation previously required non-custodial crypto asset service providers to report customer transactions, triggering fierce opposition from industry organizations and legislators.
The regulation was finalized in December 2024 to expand tax reporting scope under Section 6045 of the Tax Code to cover decentralized finance (DeFi) and non-custodial service providers. Immediately upon creation, this tax regulation faced strong resistance from the crypto asset community, arguing it was overly invasive and threatened user privacy.
Coin Center, under the leadership of executive director Jerry Brito, became one of the most vocal critics. Organizations like Blockchain Association, DeFi Education Fund, and Texas Blockchain Council also vigorously opposed, arguing the regulation was impractical for non-custodial models and severely violated user privacy.
Congress Intervenes through Congressional Review Act
Pressure from the community and industry organizations compelled the U.S. Congress to act. Through the Congressional Review Act (CRA), legislators officially canceled the regulation. President Joe Biden signed the resolution rejecting H.J. Res. 25 on April 10, 2025, rendering the regulation as if it never existed.
The Department of Finance and Tax Authority restored Section 6045 to its original state, removing provisions targeting digital asset intermediaries like node validators or hardware wallet manufacturers. The cancellation officially took effect after being published in the Federal Register in July 2025.
For the crypto asset supporting community, this is seen as a clear victory in the struggle to protect privacy and decentralization of the blockchain ecosystem. Since the cancellation resulted from legislative action by Congress rather than a new regulation process, no public consultation phase was necessary.
