A group of crypto industry organizations is suing the Internal Revenue Service (IRS) over new regulations requiring DeFi entities to report customer information. The IRS claims these rules will help close the “information gap” with digital assets.
However, the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council argue that these requirements would unfairly burden online platforms, known as trading front-ends. They claim that these platforms are not like traditional brokers and should not be defined as such.
The lawsuit claims that defining front-ends as brokers would “push this entire technology offshore” and infringe on individuals’ privacy rights. The Blockchain Association’s head of legal, Marisa Coppel, stated that the new rules would have a negative impact on the industry’s growth.
Source: https://techcrunch.com/2024/12/29/crypto-industry-groups-sue-irs-over-broker-reporting-rule