Cryptocurrency industry groups sue IRS over broker reporting rule

Three cryptocurrency industry groups — the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council — are suing the Internal Revenue Service to ban… New regulations Which requires decentralized finance (DeFi) entities to report customer information.

The IRS has been completed Crypto tax regulations As part of the Biden administration’s Infrastructure and Jobs Investment Act. The IRS says these new rules should help “close the information gap regarding digital assets.”

The lawsuitOn the other hand, he claims that this approach would unnecessarily burden “DeFi trading front-ends” — essentially online platforms that allow users to access crypto protocols but do not necessarily “execute the transactions” themselves. The lawsuit argues against defining these front ends as intermediaries, in part because “there is simply no intermediary-like entity participating in a decentralized transaction.”

said Marissa Koppel, Chief Legal Officer at the Blockchain Association statement The new rules are “an infringement on the privacy rights of individuals using decentralized technology” and would also “push this entire booming technology offshore.”