U.S. IRS' DeFi broker ruling 'absolutely should be challenged,' says Uniswap CLO

The U.S. Internal Revenue Service (IRS) issued final regulations on Dec. 27 that require brokers in the decentralized finance (DeFi) sector to report their gross revenue from digital asset sales, Cointelegraph reported. Katherine Minarik, chief legal officer (CLO) at decentralized crypto exchange Uniswap, wrote in a recent X post that there are approaches to challenge this, and it "absolutely should be challenged." In the finalized regulations, the IRS categorizes "any service that affects a transaction" as a broker, with DeFi technology being one of its covers. Robin Singh, chief executive officer (CEO) at crypto tax platform Koinly, pointed to the potential significant cost of carrying out the necessary reporting systems. Bill Hughes, a lawyer at blockchain development firm Consensys, also noted that the ruling is “all cost, no benefit.” This ruling has been in the works for some time, Hughes stated, adding that the IRS "dump it on the last Friday of 2024 in the middle of a holiday stretch on purpose, obviously.”