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a16z Crypto Supports Lawsuit Against US Treasury’s New DeFi Broker Rules
December 30, 2024 – In a recent post, Michele Korver, the head of regulation at a16z Crypto, has expressed support for the lawsuit against the U.S. Treasury, Secretary Janet Yellen, and the Internal Revenue Service (IRS) over the new “DeFi broker reporting rules.”
a16z Crypto Joins Others in Lawsuit Against DeFi Broker Rules
Korver announced that a16z Crypto is backing the lawsuit filed by the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council. The lawsuit claims that the U.S. Treasury and IRS have exceeded their statutory authority, violated the Administrative Procedure Act (APA), and acted unconstitutionally.
a16z Crypto Believes in DeFi’s Potential
In a tweet, Korver emphasized that a16z Crypto believes decentralized finance (DeFi) can enhance financial services and the digital economy by making them more accessible, efficient, interoperable, reliable, and consumer-focused. However, she argued that the new regulations pose a direct threat to this potential and undermine the future of DeFi innovation in the United States.
The New Regulations
Recently, the U.S. Treasury finalized new regulations for brokers involved in digital asset transactions, often associated with DeFi. These rules require brokers (not digital asset holders) to report gross proceeds from sales or exchanges of digital assets via Form 1099. The regulations aim to simplify tax compliance for taxpayers by ensuring DeFi brokers follow the same reporting rules as securities brokers and custodial trading platforms.
Korver emphasized that these rules exclude software developers and protocol operators, focusing on reducing broker burdens while closing the tax gap.
Source: www.cryptonewsz.com
