According to TechFlow, on December 30, the DeFi Education Fund, the Blockchain Association and the Texas Blockchain Commission are suing the U.S. Internal Revenue Service to block new regulations requiring DeFi entities to report customer information.
The lawsuit claims that this practice would place an undue burden on “DeFi trading front ends,” which are platforms that allow users to access crypto protocols but do not necessarily “enable transactions” themselves.
The lawsuit opposes defining these front ends as brokers, as there are no broker-like entities in decentralized exchanges. Previously, the IRS required brokers to report digital asset transactions, bringing DeFi platforms into the tax framework.