U.S. Treasury Revokes Crypto Exchange Reporting Regulations

On July 10, 2025, the U.S. Treasury Department revoked a rule mandating decentralized cryptocurrency exchanges report customer transaction data to the IRS, aligning with prior Congressional action.

This development signifies a critical shift for decentralized finance (DeFi), relieving exchanges of burdensome compliance duties and potentially boosting industry growth.

U.S. Treasury’s Groundbreaking DeFi Regulation Shift

The U.S. Treasury, following Congress and presidential approval, has officially rescinded a regulation introduced earlier this year. This rule initially required decentralized exchanges to provide customer data to the IRS, which the industry deemed impractical due to the automated nature of these platforms.

With the regulation lifted, exchanges no longer need to meet challenging compliance demands, potentially enhancing their viability and appeal. The industry response has shown optimism, as decentralized platforms are now freer to focus on innovation without additional bureaucratic pressures.

Sen. Ted Cruz (R., Texas), United States Senate, – “It’s a powerful statement of the importance of crypto. I think crypto was one of the major issues in the last election. We just saw a really strong bipartisan repudiation of that regulation.” Bloomberg Tax

Ethereum Gains Amid Regulatory Repeal and Market Dynamics

Did you know? The U.S. Treasury’s revocation of DeFi broker regulations mirrors past efforts to align crypto policies with technological constraints, reflecting a similar 2021 scenario when enforcement of IRS obligations faced implementation hurdles.

CoinMarketCap notes that Ethereum (ETH) is valued at $2,770.67 with a market cap of buy signal. Recent trading volume reached 29,345,657,768.91, up 44.95%. Notably, ETH’s price has jumped 77.12% over the last 90 days, reflecting dynamic market conditions.

According to Coincu research, the repeal supports DeFi growth by eliminating compliance overhead, but challenges may arise as policymakers strive to regulate fast-evolving crypto markets. This opens discussions about balancing innovation with security.