The Blockchain Association, a prominent nonprofit crypto advocacy group, is taking legal action against new reporting rules for decentralized finance (DeFi) brokers. The group argues that the recent decision by the IRS and the Treasury Department to impose reporting requirements on DeFi protocols is unjust and could have detrimental effects on the US digital assets industry.
According to a press release issued by the Blockchain Association, the new rule would require DeFi brokers to report on the gross proceeds of sales of their digital assets. Marisa Coppel, head of legal at the firm, criticized the decision, stating that it exceeds the agencies’ authority and infringes on the privacy rights of individuals using decentralized technology. She also warned that such regulations could drive the DeFi industry offshore.
The Blockchain Association is filing a lawsuit against the rule, claiming that it violates the Administrative Procedure Act and is unconstitutional. Kristin Smith, the CEO of the organization, voiced her opposition to the new regulations on social media, emphasizing the importance of protecting the future of crypto and DeFi in the United States.
The legal battle between the Blockchain Association and the government highlights the ongoing struggle to regulate the rapidly evolving crypto industry. As stakeholders continue to push for clarity and fairness in the regulatory landscape, it remains to be seen how this lawsuit will impact the future of decentralized finance in the US.
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