Last year, the Treasury and IRS released two sets of final crypto reporting regulations. The first set, in July, imposed rules for custodial brokers (which we discussed here). The second set, in December, imposed rules for DeFi (which we discussed here). This piece provides updates since our last discussion of these regulations.

Custodial Broker Regulations

Under the custodial broker regulations, taxpayers must adequately identify to their brokers the specific crypto units they sell, which is particularly relevant if they hold multiple units of the same digital asset with different bases or holding periods. If they fail to do so, units are deemed sold on a first-in, first-out basis. Since brokers may not be ready to accept this information, the Treasury and IRS issued Notice 2025-7 on December 31, 2024, allowing taxpayers to make these identifications to themselves for the 2025 tax year. Taxpayers can do so prior to a sale by identifying and recording the specific units being sold using identifiers sufficient to determine their basis and holding period or recording a standing order that includes enough information to identify the units.

DeFi Regulations

In January, Senator Ted Cruz (R-TX) introduced a joint resolution of disapproval under the Congressional Review Act to nullify the DeFi regulations (which we discussed here). The Senate adopted the resolution on March 4, 2025. An identical resolution introduced in the House was approved by the House Ways and Means Committee during a February 26th markup and passed the House on March 11th. The resolution will return to the Senate for another vote, and, if adopted and signed by President Trump, whose administration has already signaled support for its passage, the regulations will be nullified.

We will continue to monitor developments regarding both sets of regulations and provide updates as they arise.