According to Odaily Planet Daily, the latest ruling from the IRS requires DEX to comply with traditional broker reporting standards, sparking criticism from cryptocurrency executives and legal experts.
Uniswap Chief Legal Officer Katherine Minarik questions the IRS's reasoning, arguing that the ruling incorrectly classifies DeFi platforms as brokers. Uniswap CEO Hayden Adams hopes to overturn the ruling through legal challenges.
New regulations require brokers to report the total income from digital asset transactions, including cryptocurrencies, stablecoins, and NFTs, applicable to front-end DeFi platforms, set to be implemented in 2027.
Critics argue that these requirements are not suitable for the nature of decentralized platforms. Koinly CEO Robin Singh warns that compliance could impose a significant burden. Consensys lawyer Bill Hughes criticizes its global implications, predicting that the regulations will face congressional scrutiny.
Venture capital firm Variant's Chief Legal Officer Jake Chervinsky describes the rule as an 'illegal' measure that could be overturned by courts or a new government.