According to Deep Tide TechFlow news on December 30, Techcrunch reported that the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council are suing the IRS to prevent new regulations that require decentralized finance (DeFi) entities to report customer information.
The lawsuit claims that this practice imposes undue burdens on the 'DeFi trading frontends,' which essentially refer to online platforms that allow users to access crypto protocols but do not necessarily 'execute trades' themselves. The lawsuit opposes defining these frontends as brokers, partly because 'there are fundamentally no entities resembling brokers in decentralized trading.'
Previously reported, the IRS issued final regulations requiring brokers to report digital asset transactions, bringing decentralized finance (DeFi) platforms under the existing tax framework.