Andreessen Horowitz’s blockchain arm, A16z Crypto, has criticized the US Internal Revenue Service (IRS) and the Treasury Department for their new DeFi rules.
In a December 30 article on
These groups argue that new government brokerage rules for digital asset service providers threaten the future of the U.S. digital asset industry.
The DeFi Fund said:
“In order to protect DeFi and the digital assets industry more broadly, we sued Treasury and the IRS (to) challenge their doomed regulations, which would essentially serve as a ban on DeFi.”
A16z defends DeFi
Korver explained that A16z Crypto’s support for the lawsuit is rooted in the belief that DeFi can create a more inclusive, efficient, and consumer-centric financial system. The company views this legal challenge as essential to preserving the future of DeFi in the United States.
According to Korver, the US Treasury has issued a “midnight” broker reporting rule that directly threatens and undermines the future of DeFi innovation in the United States.
Korver explained that the rule exceeds Treasury’s statutory authority, violates the Administrative Procedure Act (APA), and is unconstitutional.
A16z Crypto reassured developers that it would continue to defend DeFi on multiple fronts, including legal action and legislative engagement. She said:
“DeFi builders need to be confident that industry lawyers are working hard to protect this technology. We will continue to fight on all fronts – in the courts and with the help of Congress and the new executive branch. »
Meanwhile, notable figures in the crypto world have echoed A16z’s concerns. Uniswap founder Hayden Adams criticized the regulation, calling it a deliberate attempt to hobble DeFi in the final days of the current administration.
He added:
“I hope it will be rejected under the Congressional Review Act and, if not, it will probably not withstand legal challenges.”
