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IRS DeFi Broker Rule Sparks Backlash: Crypto Experts Weigh In
The Internal Revenue Service (IRS) has finalized the regulations defining certain front-end protocols facilitating digital asset transactions as brokers, sparking widespread criticism within the cryptocurrency and blockchain community. The move has left experts questioning the potential impact of this new rule on the growth of decentralized finance (DeFi).
Industry leaders are strongly opposing these new regulations, citing concerns about stifling innovation in the DeFi sector. Pro-XRP lawyer John Deaton expressed his disapproval of the decision, labeling it “awful and un-American.” According to him, such a move would be detrimental to the growth of decentralized finance.
Uniswap’s Chief Legal Officer Katherine Minarik echoed similar sentiments, expressing doubts about the ruling’s durability due to potential challenges. She also emphasized the need for clear boundaries in regulating technology beyond the crypto industry.
CEO Hayden Adams further urged Congress to take immediate action under the Review Act to nullify this decision.
Meanwhile, Variant chief legal officer Jake Chervinsky labeled the new rule as a “dying gasp of the anti-crypto army on its way out of power.” He emphasized that it is crucial for lawmakers to recognize the importance of decentralized finance and blockchain technology in the development of the financial sector.
Paradigm executive Alexander Grieve also raised concerns about the need for Congress to reverse this decision next year.
Source: cryptotale.org
