Launchy Regulatory Roundup #45 - US Drops DeFi Broker Tax Rule

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Welcome to our 45th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: US Drops DeFi Broker Tax Rule 👀 

• Global Legal Roundup

• Case Study: Tokenized Securities in Federal Regulations

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HEADLINE

US Drops DeFi Broker Tax Rule

State of play: The US Treasury Department and IRS have formally repealed the “crypto broker” tax rule that would have forced decentralized exchanges and other non-custodial crypto services to report detailed customer transaction data to the IRS.

• The rule aimed to close tax reporting gaps by expanding the definition of a “broker” to include DeFi participants.

• Although the Treasury later excluded miners and node operators, the IRS finalized requirements for DeFi platforms in late 2024.

• Industry groups argued the rule was impossible to enforce because decentralized protocols don’t control or collect user identities.

• Congress voted to overturn the rule in March, and President Trump signed the repeal in April

• The Treasury confirmed in July 2025 that the rule has no legal force and all related regulations have been removed.

What’s Next: DeFi platforms can keep operating without collecting customer data, but new tax rules may still emerge.

Why it Matters: The repeal removes major compliance hurdles and preserves user privacy, supporting DeFi growth in the US.

Our Take: This is a win for innovation and decentralization, but the industry should expect fresh proposals for tax reporting in the future.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 CZ threatens to sue Bloomberg over Trump stablecoin report.

• 🇺🇲 Grayscale presses SEC to allow its multi-crypto fund to launch.

• 🇺🇲 Warren unveils crypto standards, slams GOP 'handout' to industry.

• 🇺🇲 US lawmakers to discuss crypto tax policy amid push to pass three bills.

• 🇺🇲 Florida AG probes Robinhood Crypto for misleading users on trading costs.

• 🇺🇲 Senate confirms former blockchain executive Jonathan Gould to lead OCC.

• 🇺🇲 Coinbase sues Oregon Gov. Kotek for public records over crypto policy shift.

Europe:

• 🇷🇺 Russia rolls out crypto mining equipment registry.

Middle East & Africa

• 🇦🇪 Dubai approves tokenized money market fund in RWA drive.

APAC:

• 🇭🇰 Hong Kong eyes stablecoin licenses this year.

• 🇰🇷 South Korea plans to lift crypto venture business restrictions.

• 🇵🇰 Pakistan launches crypto regulatory body for digital asset sector.

• 🇦🇺 Australia's CB advances to test CBDCs, tokenized asset settlement.

• 🇳🇿 New Zealand to ban crypto ATMs in efforts to combat money laundering.

• 🇨🇳 Shenzhen issues warning on stablecoin scams, illegal crypto fundraising.

CASE STUDY

Tokenized Securities in Federal Regulations

Credits to Cointelegraph and Vincent Quill for the original article

State of play: SEC Commissioner Hester Peirce has warned that tokenized stocks are still considered securities and must follow all federal regulations, including disclosure requirements.

• Her statement comes as companies like Coinbase and Kraken look to launch tokenized equities in the US.

• Lawmakers debate whether new bills could let firms bypass oversight by moving stocks to the blockchain.

• While SEC Chair Paul Atkins called tokenization an innovation, Peirce’s comments make clear that compliance will still be strictly enforced.

Our Take: Tokenization won’t be a free pass around regulation. While blockchain can modernize how securities are traded, firms should expect the SEC to enforce full compliance. Any company planning to tokenize stocks will need robust legal strategies.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Daniel Barabander’s read on Control is a Spectrum.

• Timothy Massad’s article on Stablecoins and National Security.

• Yueqi Yang’s article on Why New US Crypto Rules Will Reverberate Globally.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.