US Cancel DeFi Broker Rule, End Crypto Tax Reporting
US Treasury an IRS don repealed di controversial DeFi broker rule wey dem wan force decentralized exchanges an noncustodial wallets to collect an report user identities an transactions for 1099 forms under new crypto tax requirements. For March 2025, Congress use Congressional Review Act vote remove di rule from di Code of Federal Regulations, an President Trump sign di repeal for April, wey restore di text wey dey before di rule. Di original IRS directive wey dem rush come December under di 2021 Infrastructure Act treat DeFi front-end providers like traditional brokers, classify trades as gambling winnings or royalties wey bring privacy concerns an imtechnical impracticality. Di repeal bring big regulatory relief for di DeFi sector, reduce compliance burdens, an fit improve DeFi trading activity an market confidence, show say di crypto tax debate don end an US authorities dey more crypto friendly.
Bullish
Di repealing of DeFi broker rule don comot strong compliance wahala and uncertain for decentralized exchanges and noncustodial platforms, e go reduce operational costs and privacy risks. For short term, traders fit go move their money into DeFi tokens like UNI, wey go push price go up. For long term, this regulatory clarity fit make people begin use am more and launch new products for DeFi space, wey go support steady bullish momentum for related cryptocurrencies.