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ARTICLE · 07 JANUARY 2025

Blockchain Advocates File Suit Challenging IRS DeFi Regulations

Gray Reed
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The IRS published final regulations on information reporting obligations for certain DeFi participants and, on the same day, the Blockchain Association, Texas Blockchain Council...

United StatesTechnology
Joshua D. Smeltzer
Joshua D. Smeltzer
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The IRS published final regulations on information reporting obligations for certain DeFi participants and, on the same day, the Blockchain Association, Texas Blockchain Council, and DeFi Education Fund filed a lawsuit in the Northern District of Texas claiming violations of the Administrative Procedures Act and the U.S. Constitution.

My previous article provided a summary of the DeFi trading front-end service providers targeted by the IRS and noted that the IRS specifically addressed "Constitutional Concerns" raised by commenters. These constitutional concerns are outlined in the Complaint (the "Complaint") filed by the advocacy groups along with challenges to the scope of definitions used by the IRS and Treasury to reach the conclusion that certain trading front-end service participants in the DeFi community are "brokers" with reporting requirements.

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