Industry groups sue to stop IRS from collecting user info from DeFi front-ends

The Blockchain Association and two other groups sued the IRS to challenge a recently-finalized rule that would require DeFi front-ends to report user data, including personal information and details of each trade, to the agency starting in 2027. The requirement would “push this entire, burgeoning technology offshore,” the advocacy group’s top lawyer said. The IRS argued in its final rule that tracking DeFi transactions would “benefit tax compliance by helping to close the information gap with respect to digital assets.”