The Blockchain Association and the Texas Blockchain Council have filed a lawsuit against the IRS over new regulations requiring brokers to report digital asset transactions. Announced on Dec. 27, these rules expand existing requirements to include decentralized exchanges, mandating brokers disclose gross proceeds and taxpayer information starting in 2027. Critics argue this infringes on privacy rights and could push DeFi innovation offshore. The lawsuit claims the IRS's rulemaking is unconstitutional and burdensome for software developers. The regulations are expected to impact up to 2.6 million US taxpayers.