The Blockchain Association and the Texas Blockchain Council challenged the IRS's new crypto broker regulations by filing a joint lawsuit.
Conflict with IRS: Causes and Essence
On December 27, the IRS issued final regulations requiring brokers to report digital asset transactions, expanding existing requirements to include platforms such as decentralized exchanges. These rules mandate brokers to disclose gross proceeds from cryptocurrency and digital asset sales.
New DeFi Rules and Their Implications
If a DeFi platform facilitates the exchange or sale of digital assets, it could be defined as a broker. The Blockchain Association argues this imposes unlawful burdens on software developers, raising concerns among developers.
Experts' Opinion: Privacy Rights Under Threat
Some legal experts see the IRS's new rules as infringing on DeFi users' privacy rights. The new 'broker' definition includes DeFi trading front-ends, potentially pushing technologies offshore.
The IRS's new rules, set to take effect in 2027, affect a large number of DeFi brokers and US taxpayers, raising concerns among both developers and users.
