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Treasury and IRS Finalize 115-Page Crypto Broker Rules for DeFi Starting January 1, 2027, Facing Congressional Review

Dec 27, 2024, 02:41 PM

The U.S. Treasury Department and the IRS have finalized new reporting requirements for cryptocurrency brokers, particularly affecting decentralized finance (DeFi) platforms. The finalized 'broker rule' mandates that trading front ends must track and report user activity, including transactions involving U.S. persons and non-U.S. persons, starting January 1, 2027. This rule, which spans 115 pages, has been criticized for being burdensome and overly broad, potentially applying to various digital asset transactions, including NFTs. The new regulations are expected to face scrutiny and possible rollback through the Congressional Review Act (CRA) in the upcoming Congress. The rule's release coincides with a year-end period, raising concerns about its timing and the implications for the cryptocurrency industry.