The U.S. Treasury’s decision to remove crypto broker reporting rules, as reported by Bloomberg, reverses a 2023 IRS mandate requiring custodial brokers to report digital asset sales, potentially signaling a shift toward lighter regulation amid growing crypto adoption, with transaction volumes reaching $2.8 trillion in 2024 per Chainalysis data.
This move contrasts with global trends, where countries like the EU (MiCA regulation) and South Korea have tightened crypto oversight, suggesting the U.S. may be prioritizing innovation over anti-money laundering measures, despite FATF warnings of a $2 billion annual illicit crypto flow.No peer-reviewed studies directly address this policy shift yet, but historical data from the 2017 Bitcoin boom shows reduced reporting led to a 30% tax revenue gap, hinting at potential fiscal risks if enforcement weakens.
