A coalition of crypto advocacy groups has launched a legal challenge against the US Internal Revenue Service (IRS), arguing that its new reporting requirements for decentralized finance (DeFi) platforms represent an overreach and threaten user privacy.
The Blockchain Association, DeFi Education Fund, and Texas Blockchain Council jointly filed a lawsuit contesting the IRS and Treasury Department’s decision to classify DeFi platforms as “brokers.”
This move, finalized on December 27, has drawn sharp criticism from within the cryptocurrency sector. By broadening the definition of a broker, the IRS now requires decentralized exchanges and other related platforms to report all digital asset transactions, including sensitive taxpayer details. The rule is set to take effect in 2027.
We obtained a copy of the lawsuit for you here.
This regulatory change exceeds the IRS’s statutory authority, violates the Administrative Procedure Act, and raises constitutional concerns. The plaintiffs contend that the rule imposes excessive compliance burdens, particularly on software developers who create DeFi trading interfaces. They warn that such requirements could stifle innovation and push technological advancements offshore. […]
— Read More: reclaimthenet.org
