🔥 a16z crypto Joins Lawsuit Against IRS Regulations
posted 30 Dec 2024
a16z crypto has joined a lawsuit challenging IRS rules that compel crypto companies to disclose detailed user transaction data and account ownership records.
DeFi builders should feel confident that industry attorneys are working hard to protect this technology. We will keep fighting on all fronts - in the courts, and with the help of Congress and the incoming executive branch,a16z crypto stated in a press release.
Under the new IRS regulations, developers of decentralized finance (DeFi) platforms are now categorized as brokers, placing them under stringent transaction reporting mandates. Kristin Smith, Blockchain Association CEO and a central figure in the legal challenge, labeled these measures unconstitutional.
She reiterated the importance of resisting governmental overreach to ensure a thriving environment for U.S.-based crypto innovation, particularly in the DeFi sector. Failure to act, she warned, could cost the U.S. its leadership in the digital asset space.
The rules have drawn criticism from independent developers, many of whom fear future legal crackdowns. Their concerns are not without basis: Alexey Pertsev, developer of the Tornado Cash crypto mixer, was convicted of money laundering and sentenced to five years in prison—a case now emblematic of the risks developers face.
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