Form 1099-DA: How Trump’s Repeal Changes Crypto Reporting?
Form 1099-DA has become one of the most confusing pieces of the crypto tax puzzle. Ever since the IRS introduced Form 1099-DA to track digital asset sales, there’s been uncertainty around who it applies to and what happens if you don’t comply.
Things got even more complicated when the IRS tried to pull DeFi platforms into its broker rule, only for that move to be repealed by Congress on April 10.
To understand where we are now, it’s worth looking at how we got here.
- Nov 2021 – IIJA law expands IRS definition of “broker” to include crypto platforms
- 2022 – Industry pushback begins over unclear language
- Mid-2023 – IRS introduces Form 1099-DA with proposed broker rules
- Jan 2024 – Rule finalized: centralized platforms must issue forms in 2025
- Mar–Apr 2025 – Congress repeals DeFi reporting rule; Trump signs it into law
So, where does that leave you?
This guide explains what Form 1099-DA means after the repeal, who still needs to report, and how to stay on the IRS’s good side—whether you use centralized exchanges, DeFi, or both.
What Is Form 1099-DA?
First proposed in the Infrastructure Investment and Jobs Act (IIJA) in 2021 and scheduled to take effect in 2025, Form 1099-DA shifts the responsibility from individuals to centralized brokers and platforms.
Think of it as the crypto version of Form 1099-B for stocks. Instead of stocks and ETFs, Form 1099-DA focuses on cryptocurrencies, NFTs, stablecoins, and other tokens on a blockchain.
Starting in 2025, if you sell or trade crypto through a centralized exchange, you’ll likely receive IRS Form 1099-DA. It shows when you bought and sold, your cost basis, and how much you made or lost. Platforms will send a copy to both you and the IRS.
The goal? Better crypto tax compliance.
The IRS isn’t leaving it up to you anymore. They want platforms to track and report everything, so they can match your return against it. If you’re a U.S. crypto investor, DeFi user, or tax pro, this is a big shift. Digital asset tax reporting just got real.
How DeFi Got Caught in the Crossfire?
In late 2024, the IRS took a bold and controversial step. On December 27th, it finalized regulations to include not just centralized exchanges like Coinbase but also certain DeFi front-ends like Uniswap’s website in the new IRS crypto “broker” definition.
Here’s why that didn’t sit well.
DeFi front-ends aren’t brokers in the traditional sense. They don’t hold your funds. They don’t open user accounts. They just help you connect with smart contracts. Imagine blaming a GPS app for a traffic ticket—it shows you the road, but it doesn’t drive the car. Read our guide on decentralized finance to learn more.
Yet under the new rule, these platforms fall under the 1099-DA crypto reporting requirement. This means they would need to collect user info, track trades, and issue Form 1099-DA. Technically, that’s close to impossible. Many DeFi tools are open-source, don’t ask for logins, and don’t store data.
The crypto industry pushed back hard. Lawyers called it unconstitutional. Developers said it criminalized writing code. Others warned it would drive innovation offshore.
Despite all this, the IRS stuck to its position. It argued the move was necessary to close the crypto reporting gap. And in January 2025, it published the final version of IRS Form 1099-DA, applying the rule to both centralized brokers and some DeFi interfaces.
Repealing the Form 1099-DA for DeFi Platforms?
By early 2025, the IRS’s expanded crypto broker reporting rule had stirred up serious controversy. The new IRS crypto “broker” definition didn’t sit well with most of the crypto community. For once, both sides of the aisle agreed: the IRS went too far.
In March 2025, Congress used the Congressional Review Act to overturn the rule. That’s a rarely used tool that allows lawmakers to roll back recently finalized regulations. Both the Senate and the House voted to repeal the expanded broker definition. And on April 10, 2025, President Trump signed it into law.
The repeal meant a few big things for DeFi.
First, decentralized platforms were no longer classified as brokers. That lifted the pressure to collect personal data or send IRS Form 1099-DA forms to users. For open-source developers, it also removed fears about being treated as financial intermediaries for just maintaining code.
But the repeal didn’t erase tax obligations. Users are still on the hook. If you earn or trade through DeFi, you’re still expected to report your gains, even without a form in your inbox.
And while this was a win for DeFi, it may only be temporary. A future administration could come back with a new, more refined version of the rule.
But for now? DeFi platforms are off the hook. But DeFi users aren’t.
Who Still Has to Report Form 1099-DA?
The repeal of the broker rule for DeFi platforms doesn’t mean Form 1099-DA is entirely going away. It just narrowed down who’s responsible for issuing it.
Centralized exchanges like Coinbase, Kraken, and Gemini still fall under the IRS crypto broker definition. These platforms hold your assets, verify your identity, and track your trades. Starting in 2025, they’re required to issue Form 1099-DA for all eligible transactions. If you sell or swap crypto through them, expect to get a form, and so will the IRS.
DeFi platforms, on the other hand, are off the hook. After the repeal, front-ends like Uniswap’s website aren’t considered brokers. That means no forms, no user data collection, and no direct IRS reporting. But that doesn’t mean DeFi users are in the clear.
Individual crypto investors and traders—whether using centralized exchanges or DeFi—still have to report their own gains and losses. This includes token swaps, NFT sales, airdrops, and staking rewards.
If you’re using DeFi, you’re flying solo. You’ll need to track purchase and sale dates, values, and calculate gains manually—or use tools like Bitcoin.Tax.
What This Means for You: Investors, Traders, and Developers
So, what does all this mean for you?
If you trade on centralized exchanges like Coinbase or Kraken, not much changes. These platforms will still issue Form 1099-DA starting in 2025. It lists your crypto sales, dates, and profits—kind of like a W-2, but for your Bitcoin. The IRS gets a copy too, so make sure your tax return lines up.
If you use DeFi platforms like Uniswap, Aave, or Curve, things get trickier. You won’t get a 1099-DA in the mail—but you still need to report every swap, bridge, and staking reward. You’re flying solo here. The IRS won’t chase your form, but they can track wallets through partners like Chainalysis. So don’t assume you’re invisible.
If you’re a DeFi developer or front-end operator, the repeal gives you some breathing room. You no longer have to collect user data or issue tax forms. But stay alert—regulations may return in a different form. You might also consider adding optional tax tools for users.
Will DeFi Reporting Come Back?
The repeal of the DeFi broker rule was a big win, but it’s not the end of the story.
The IRS still sees DeFi as a massive blind spot in digital asset tax reporting. With pseudonymous wallets and peer-to-peer swaps, tracking activity is tough. Some estimates, like one from Barclays in 2022, suggest the IRS loses up to $50 billion a year from unreported crypto taxes. That problem hasn’t been solved. Just postponed.
While Form 1099-DA no longer applies to DeFi front-ends, the IRS hasn’t dropped the idea. The Congressional Review Act only blocked this version. Future administrations could easily come back with a more refined approach, one that targets certain apps, roles, or transaction types.
That said, the current regulatory tone is more crypto-friendly than it’s been in years. In 2025 alone, the government:
- Prohibited the creation of a Central Bank Digital Currency (CBDC)
- Passed legislation to support USD-backed stablecoins
- Issued an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile
These moves show a clear shift toward embracing blockchain, not banning it. But that balance can flip quickly, especially after an election.
So for now, DeFi developers can breathe. But don’t get too comfortable. The next version of crypto broker reporting could be smarter, stricter, and aimed right back at DeFi.
The Burden Is Still on You
The repeal of the IRS’s broker rule for DeFi platforms gave the crypto space a breather, but not a free pass. If you’re trading through DeFi, the reporting responsibility now falls squarely on you.
Just because you don’t get a Form 1099-DA doesn’t mean you don’t owe taxes. The IRS has made that crystal clear. If you’ve earned, sold, swapped, staked, or bridged crypto, you’re expected to report it, regardless of the platform.
Here’s what that means in practice:
- Track every transaction—including token swaps, NFT sales, and yield farming rewards.
- Record your cost basis and sale price to calculate accurate gains or losses.
- Include gas fees in your reporting—they can affect your true net outcome.
- File on time, even if no form lands in your inbox.
The IRS isn’t offering grace periods to individual users. Their “good faith relief” only applies to brokers, not to you. If you get it wrong, penalties can include interest, audits, or up to 75% of the tax owed. Read more about penalties on crypto taxes here.
Doing this manually, especially across wallets, chains, and protocols, is painful. Tools like Bitcoin.Tax can help automate the process, generate reports, and make tax season less chaotic.
Want more clarity?
Check out our U.S. crypto tax guide for a full breakdown of how various crypto transactions are taxed—and if you’re looking for a smoother workflow, read our guide on how to report crypto transactions easily.
The bottom line: the form may not show up in your inbox, but the IRS still expects you to show up on your return.