The U.S. Internal Revenue Service (IRS) has issued final regulations requiring decentralized finance (DeFi) brokers to report gross proceeds from digital asset transactions and provide customers with Form 1099, which collects user transaction information, including name and address. The regulations apply to trading front-end service providers that interact directly with users, such as entities that provide access to decentralized protocols, such as Uniswap Labs, but not the protocols themselves. The regulations will subject DeFi brokers to the same tax reporting rules as traditional securities brokers and are scheduled to take effect in January 2027. Despite industry questions about the difficulty of data collection and privacy issues, the U.S. Treasury Department and the IRS insist that DeFi participants should be subject to the same tax regulations. The rule may face legal action and congressional review, and industry organizations such as the Blockchain Association have said they will take active action to fight it. (The Block)