Three crypto industry groups, the DeFi Education Fund; The Blockchain Association and the Texas Blockchain Council are suing the Internal Revenue Service to block it. New rules Decentralized finance (DeFi) organizations are required to report customer information.
The IRS is finalizing it. Crypto tax rules As part of the Biden administration's Infrastructure Investment and Jobs Act. The IRS says these new rules should help “close the information gap regarding digital assets.”
sued.On the other hand, It says this approach unburdens “DeFi transaction front ends” — essentially. Online platforms that allow users to access crypto protocols but don't require them to effectively perform “transactions” themselves. The lawsuit rejects the designation of these front ends as brokers because “there is no broker-like entity involved in decentralized transactions.”
said Marisa Coppel, chief legal officer of the Blockchain Association. Statement It said the new rules would “infringe on the privacy rights of individuals using decentralized technology” and “push the growing technology offshore.”