The Blockchain Association, DeFi Education Fund, and Texas Blockchain Council have sued the IRS to contest a rule demanding DeFi brokers to gather and share user information from 2027. Critics argue this rule creates excessive burdens, endangers privacy, and could drive DeFi tech offshore.
The IRS says the new rule will enhance tax compliance and bridge digital asset gaps. Based on the 2021 Infrastructure Investment and Jobs Act, it affects 650 to 875 DeFi brokers, involving about 2 million taxpayers. Experts warn this may hinder U.S. Competitiveness in the digital economy.