Legal Action Initiated Against the IRS Over Defi Broker Regulatory Decisions
In a recent development, a lawsuit has been filed against the Internal Revenue Service (IRS) by the Blockchain Association, Texas Blockchain Council, and DeFi Education Fund. The lawsuit, as of current search data, has not revealed any publicly available updates or detailed status reports.
The lawsuit centres around the new DeFi data disclosure rules proposed by the IRS, with claims that these rules violate the U.S. Constitution and the Infrastructure Investment and Jobs Act. The Infrastructure Investment and Jobs Act is one of the laws that the lawsuit alleges are being violated.
Marisa Coppel, Head of Legal at the Blockchain Association, has stated that the government's actions are increasing risks and creating opportunities for inequality in Decentralised Finance (DeFi). She further emphasised the need to protect DeFi technology, not destroy it. Coppel also stated that the government is imposing intermediaries where there are none in DeFi, which could potentially harm the fairness of the financial system.
In a separate case, a group of Tezos validators are pursuing a court case to force the IRS to revise taxation rules for staking income. This lawsuit is not related to privacy concerns or the IRS's authority, as in the earlier lawsuit mentioned. Instead, it is an attempt to force a revision of the taxation rules for staking income.
The Tezos validators' lawsuit alleges that the data collection from DeFi users infringes on privacy and exceeds the IRS's authority. Coppel reiterated that the government's actions could lead to an unfair and unequal financial system, potentially harming the growth and development of DeFi technology.
As the legal process unfolds, it will be interesting to see how these lawsuits impact the future of DeFi and the relationship between the IRS and the blockchain industry. For the latest updates on this developing story, keep an eye on official court dockets, Blockchain Association announcements, or reputable legal news sources.
- The DeFi Education Fund, alongside the Blockchain Association and Texas Blockchain Council, have lodged a lawsuit against the IRS, contesting the new DeFi data disclosure rules, which they claim violate the U.S. Constitution and the Infrastructure Investment and Jobs Act.
- Marisa Coppel, Head of Legal at the Blockchain Association, has expressed concerns that the IRS's proposed rules could increase risks, encourage inequality in Decentralised Finance (DeFi), and potentially harm the fairness of the financial system, by imposing intermediaries where none currently exist in DeFi technology.
