ARTICLE
5 May 2025

DeFi Off The Hook For Crypto Tax Reporting

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
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.
United States Tax

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.

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