Blockchain Firm A16z Enters Legal Fray Against Treasury and IRS Over Decentralized Finance Rules

A16z Joins Legal Fight Against Treasury and IRS Over DeFi Rules

In a shocking move, Andreessen Horowitz’s blockchain arm, A16z Crypto, has joined the legal fight against the US Treasury Department and the Internal Revenue Service (IRS) over decentralized finance (DeFi) rules. The company’s head of regulation, Michele Korver, has vehemently opposed the recent broker reporting rule issued by the Treasury, arguing that it poses a significant threat to the future of DeFi innovation in the United States.

According to reports, the new rule aims to expand the definition of brokers, potentially capturing decentralized trading platforms and exchanges. This move has sparked widespread outrage among the crypto community, with many deeming it an attack on the decentralized economy.

In response, Korver slammed the Treasury for exceeding its authority and emphasized A16z Crypto’s commitment to defending DeFi builders. The company is now backing a lawsuit filed by the DeFi Education Fund, Blockchain Association, and Texas Blockchain Council against the Treasury and IRS.

A16z’s stance on this matter has been met with significant support from prominent figures in the crypto space. Hayden Adams, founder of Uniswap, expressed his disapproval of the timing and potential impact of the rule, while Katherine Minarik, Uniswap’s CLO, described it as an attempt to strangle DeFi innovation.

The legal challenge has also received backing from other industry leaders, who see this move as a deliberate effort by regulatory bodies to stifle growth. The crypto community is now holding its breath as the outcome of this battle unfolds.

It remains to be seen how this will impact the future of DeFi in the US market.

Source: cryptopotato.com