Blockchain Association, Educational Foundation DeFi and the Texas Blockchain Council have filed a joint lawsuit in U.S. District Court against the Internal Revenue Service (IRS).
The organizations are opposing new rules adopted by the agency on December 27 that affect crypto brokers and require them to report transactions involving digital assets, as well as disclose information about foreign exchange revenue from token sales and user information.
The new rules define a broker as any platform where traders buy or sell cryptocurrencies. The requirements will affect nearly 875 protocols, according to the IRS. DeFi and up to 2,6 million US taxpayers. This caused a great stir in the entire crypto community.
Blockchain Association CEO Christine Smith called the broker rule unconstitutional, saying the IRS is violating the Administrative Procedure Act.
Today, we are taking action by filing a lawsuit alleging that the new broker rules violate the Administrative Procedure Act and are unconstitutional," she said.
According to the head of the legal department of the Association, Marisa Koppel, such rules will lead to the fact that blockchain companies will be forced to move their business from the US to other jurisdictions.
The IRS requirements will go into full effect in 2027. However, as early as 2025, brokers will need to start collecting and providing data on cryptocurrency transactions.
