TechFlow reports on December 30 that, according to TechCrunch, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council are suing the U.S. Internal Revenue Service (IRS) to block new regulations requiring decentralized finance (DeFi) entities to report customer information.
The lawsuit argues that the rule would impose undue burdens on "DeFi transaction fronts"—essentially online platforms that allow users to access crypto protocols but do not necessarily "execute transactions" themselves. The suit challenges the classification of these fronts as brokers, in part because "there is no broker-like entity in decentralized transactions."
Previous coverage: The IRS issued final regulations requiring brokers to report digital asset transactions, bringing decentralized finance (DeFi) platforms into the existing tax framework.
