Odaily Planet Daily reported that recently, the U.S. Internal Revenue Service (IRS) has classified DeFi frontends as brokers, which has impacted the crypto industry. It is reported that the U.S. Department of the Treasury and the IRS received over 44,000 comments after proposing this rule. Alex Thorn, research director at Galaxy Digital, outlined three potential options for DeFi if the IRS rule is not rescinded. He stated that DeFi services and applications could comply with the IRS reporting requirements and accept the designation as brokers, attempt to block users from the U.S., or abandon smart contract upgrades and revenue generation. Thorn wrote: "According to the proposal, DeFi applications with no frontend website, possessing non-upgradable contracts, and not charging any 'consideration' (i.e., not charging any fees) during the disposal of digital assets can be exempted from being designated as 'brokers.' In other words, highly decentralized applications cannot understand the situation and therefore cannot comply with broker reporting requirements." (Cointelegraph) Previously, it was reported that the U.S. Department of the Treasury and the IRS finalized tax reporting requirements for specific cryptocurrency brokers (RIN 1545-BR39, TD 10021). Subsequently, the U.S. Blockchain Association announced on the X platform that it has filed a lawsuit in conjunction with the DeFi Education Fund and the Texas Blockchain Council, challenging the IRS's broker rules.