IRS’s classification of DeFi protocols as brokers stirred backlash. The rules could impact up to 875 brokers and 2.6 million taxpayers, possibly pushing the crypto industry offshore. Legal experts call this an infringement on authority.
Prominent figures are contesting the IRS regulations in court, urging Congress to use the Congressional Review Act to reverse them. A new pro-crypto Congress could take legislative measures to counteract these regulations.