Crypto industry groups sue IRS over broker reporting rule

Three groups of crypto companies – the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council – are suing the Internal Revenue Service for a ban. new rules which requires financial institutions (DeFi) to disclose customer information.

The IRS has been finalizing it crypto tax laws as part of the Biden Administration’s Infrastructure Investment and Jobs Act. The IRS says the new rules should help “close the financial information gap.”

A caseOn the other hand, they say that this approach would unduly burden “DeFi business front-end,” – in particular, Internet platforms that allow users to access crypto protocols but not “working” themselves. The court opposes the definition of forwarders as brokers, in part because “there is no entity similar to a broker engaged in trading.”

The Blockchain Association head of law Marisa Coppel said in words that the new rules “infringe on the privacy rights of people who use established technology” and “will push all of that technology out into the open.”