The IRS DeFi Broker Rule Was Repealed — Custodial Form 1099-DA Reporting Still Applies
WASHINGTON — Treasury and IRS final regulations published December 30, 2024 (TD 10021), which would have treated non-custodial digital asset “trading front-end service providers” as brokers required to file Form 1099-DA gross proceeds returns, were nullified by Congress under the Congressional Review Act and are not in effect. A separate set of custodial broker regulations finalized in July 2024 (TD 10000) remains in force.
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The two rulemakings are frequently conflated. TD 10000 reaches custodial brokers — centralized US exchanges, hosted wallet providers, and payment processors — and phased in gross proceeds reporting on Form 1099-DA for dispositions occurring on or after January 1, 2025, with basis reporting following. TD 10021 went further, extending the Section 6045 broker definition to DeFi interface operators who never take custody of customer assets.
That extension drew immediate objection that non-custodial software providers cannot collect the payee information the statute presumes. Congress used the Congressional Review Act to disapprove it, with the resolution signed in April 2025. A CRA disapproval treats the rule as never having taken effect and bars the agency from issuing a substantially similar rule absent new statutory authorization.
Implications. US custodial platforms remain subject to full 1099-DA obligations and should not read the repeal as relief. DeFi front-end operators are not brokers under the nullified rule, but the CRA resolution addressed only that regulation — it did not amend Section 6045 itself, and it did not change any taxpayer’s underlying duty to report capital gains and track basis on digital asset dispositions.
What’s next. Watch for Treasury guidance on the custodial basis reporting phase-in and for any congressional effort to legislate a digital asset tax reporting framework directly.
This content is for informational purposes only and does not constitute legal advice. Consult with a qualified US attorney for guidance specific to your situation.
