The IRS has stirred the crypto world with a new rule classifying DeFi front-ends as brokerages. This move, set to take effect in 2027, has sparked significant backlash. Alex Thorn from Galaxy Digital suggests DeFi could either comply, block U.S. users, or stop smart contract upgrades to avoid this label. Critics, including industry leaders and advocacy groups, argue this is government overreach. A lawsuit was filed by the Texas Blockchain Council and others, challenging the IRS's decision as unconstitutional. The crypto community is rallying for Congress to intervene.