The Blockchain Association, in conjunction with 75 industry participants, urges Congress to abolish the IRS's DeFi broker rules

The Blockchain Association, along with 75 participants in the cryptocurrency industry including a16z and Kraken, has written to the US Congress calling for the abolition of new rules by the Internal Revenue Service (IRS) targeting DeFi brokers. The rule was urgently introduced just before Trump's administration left office, requiring DeFi brokers to provide information reporting similar to securities brokers. Senator Ted Cruz has proposed a resolution asking for this rule to be abolished under the Congressional Review Act. The industry letter points out that this rule misunderstands DeFi technology and goes beyond congressional intent, suggesting using congressional power to revoke it before it takes effect in order to avoid negative impacts on the industry.