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