PANews December 30 news, according to a tweet by Michele Korver, head of a16z Crypto regulation, the a16z crypto team believes that decentralized finance (DeFi) can make financial services and the digital economy more efficient, interconnected, reliable, and user-centric. However, the 'Midnight Broker Report Rule' recently released by the U.S. Treasury is seen as a direct threat to this vision and may hinder the innovative development of the DeFi sector in the U.S. a16z supports the legal action initiated by organizations such as the Foundation, Blockchain Association, and Texas Blockchain against the Treasury Department, Treasury Secretary Yellen, and the IRS, arguing that the rule exceeds the Treasury's statutory authority, violates the Administrative Procedure Act (APA), and is potentially unconstitutional. a16z stated that it will continue to support DeFi technology through legal and legislative avenues.
The term 'midnight broker' primarily refers to the recent regulatory developments by the IRS and their impact on software providers in the cryptocurrency space. The term appeared in discussions about the new IRS rules, which classify certain software providers as 'brokers', thereby imposing strict 'Know Your Customer (KYC)' requirements on them.