Uniswap CLO Katherine Minarik has expressed strong opposition to the US Internal Revenue Service's (IRS) recently finalized regulation requiring DeFi brokers to report gross proceeds from digital asset sales. Minarik argues that the regulation is overly broad and will stifle innovation in the DeFi sector. The IRS's regulation defines "services affecting transactions" as brokers, which could potentially apply to a wide range of DeFi protocols and services. Minarik believes this definition is too vague and could lead to unnecessary regulatory burdens for the industry. She also argues that the regulation could have a chilling effect on innovation, as developers may be hesitant to create new DeFi products and services if they are concerned about potential regulatory compliance issues. Minarik's comments have been echoed by other industry leaders, including Bill Hughes, an attorney at Ethereum infrastructure developer Consensys. Hughes has criticized the IRS for announcing the regulation on the last Friday of 2024, when many people were on holiday. He believes this was a deliberate attempt to minimize industry feedback. The DeFi industry is still in its early stages of development, and it is important to foster innovation in this space. The IRS's proposed regulation could have a significant impact on the growth of DeFi, and it is important for the industry to come together and oppose it.