According to Odaily Planet Daily, the latest ruling by the U.S. Internal Revenue Service (IRS) requires DEX to comply with the reporting standards of traditional brokers, which has sparked criticism from cryptocurrency executives and legal experts.
Uniswap Chief Legal Officer Katherine Minarik questioned the IRS’s rationale, arguing that the ruling incorrectly classified the DeFi platform as a broker. Uniswap CEO Hayden Adams hopes to overturn the ruling through a legal challenge.
The new regulations require brokers to report total revenue from digital asset transactions, including cryptocurrencies, stablecoins and NFTs, apply to front-end DeFi platforms, and will be implemented in 2027.
Critics argue that the requirements are inappropriate for the nature of decentralized platforms. Koinly CEO Robin Singh warned that compliance could be a huge burden. Consensys lawyer Bill Hughes criticized its global reach and predicted that the regulations would face congressional scrutiny.
Jake Chervinsky, chief legal officer at venture capital firm Variant, called the rule an “illegal” measure that could be overturned by the courts or a new administration.