As soon as the US started to recover, it started to release negative news.

Here comes a new regulation... Start cutting the leeks of virtual currency.

The main contents of the new regulations:

1. Brokers need to submit information reports, including total transaction revenue and other details.

Brokers need to submit information reports (such as Form 1099-B) to the IRS, including:

A. Total revenue from digital asset transactions.

B. Information of both parties to the transaction (such as identity, address).

C. For each transaction, the transfer price and basis of the asset must be recorded.

2. For DeFi protocols, the definition of "digital asset intermediary" is clarified, and the specific types of services that need to be reported are listed.

If a non-custodial wallet provider participates in the transaction process and has access to transaction information, it may be considered a broker.

3. Exceptions for those who do not meet the "broker" requirements

A. Validators who only verify transactions.

B. Suppliers who only provide hardware or software for digital asset private key management.

C. Other participants who are not directly involved in the facilitation of transactions or do not have access to transaction details.

The effective date of the regulations is 60 days after the publication of the Federal Register. This regulation clarifies the three-layer model of the DeFi technology stack: interface layer, application layer, and settlement layer. It also proposes information reporting requirements for "front-end services" that provide user interfaces or transaction entrances.