Congress and President Trump have provided legislative relief to decentralized crypto exchanges (and DeFi protocols) from the tax reporting obligations applicable more generally to crypto ‘brokers.’ On April 10, President Trump signed Public Law 119‑5, overturning the Internal Revenue Service’s (“IRS”) recent extension of the tax reporting obligations applicable to crypto brokers to include DeFi exchanges, as previously discussed here. This action may be a prelude to the creation of an overall legislative and regulatory framework for crypto that encourages onshoring the crypto industry back to the United States.
