Blockchain Association sues IRS over crypto broker rules
The Blockchain Association and the Texas Blockchain Council filed a lawsuit against the IRS in response to new regulations requiring brokers to report digital asset transactions, effective in 2027. The rules mandate disclosure of gross proceeds from cryptocurrency sales and taxpayer information, extending to decentralized exchanges (DEXs) and DeFi platforms that influence transactions. The lawsuit argues that these regulations violate the Administrative Procedure Act and are unconstitutional. Concerns arise over the impact on blockchain developers, who may face compliance burdens similar to those faced by other software developers. Legal experts view the regulations as an infringement on the privacy rights of DeFi users, potentially driving innovation offshore. The IRS estimates that 650 to 875 DeFi brokers and up to 2.6 million U.S. taxpayers will be affected by these rules.
