Starting in 2027, the IRS's new tax rule requires DeFi platforms to gather user information and issue tax forms.
Tax Regulation Changes
The U.S. Internal Revenue Service (IRS) has introduced a new tax rule effective in 2027 that will impact DeFi brokers. Platforms are expected to collect user trading information, issue tax forms, and provide customer details such as names and addresses. This rule aims to align the taxation of digital assets with traditional ones.
Why Experts are Against It
Crypto industry leaders are pushing back against the new IRS rule that treats decentralized exchanges like traditional brokers. Uniswap’s Chief Legal Officer Katherine Minarik and CEO Hayden Adams argue for the rule to be challenged. Adams hopes it will be rejected through the Congressional Review Act. Legal experts like Bill Hughes from Consensys argue that the rule offers 'all cost, no benefit,' creating significant hurdles without clear advantages.
Other Crypto Industry News
Recently, it's been reported that Do Kwon, co-founder of Terraform Labs, will be extradited to the U.S. after his arrest in Montenegro. Meanwhile, Bitcoin remains strong, despite dipping from its all-time high, with $475 million flowing into Bitcoin ETFs. Bitget plans to burn 40% of its BGB token supply to boost its value, and new Bitcoin-focused ETFs are launching, reflecting the growing popularity of Bitcoin.
The new IRS rule may trigger significant changes in the DeFi ecosystem, increasing reporting requirements and potentially raising compliance costs.
