Andreessen Horowitz’s blockchain division, A16z Crypto, has criticized the US Internal Revenue Service (IRS) and the Treasury Department for their new DeFi rules.
In a December 30 post on
These groups claim that the government’s new brokerage rules for digital asset service providers threaten the future of the U.S. digital asset industry.
The DeFi fund stated:
“To protect DeFi and the digital asset industry more broadly, we have sued the Treasury Department and the IRS [to] challenges their doomed regulations, which would essentially serve as a DeFi ban.”
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-oriented financial system. The company views this legal challenge as crucial to securing the future of DeFi in the United States.
According to Korver, the U.S. Treasury Department has issued a “midnight” reporting rule that directly threatens and undermines the future of DeFi innovation in the United States.
Korver explained that the rule exceeds the statutory authority of the Treasury Department, violates the Administrative Procedure Act (APA) and is unconstitutional.
A16z Crypto assured developers that it will continue to advocate for DeFi on multiple fronts, including legal action and legislative involvement. She stated:
“DeFi builders need to trust that industry advocates 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 space have echoed A16z’s concerns. Uniswap founder Hayden Adams criticized the regulations, calling them a deliberate attempt to hinder DeFi in the final days of the current administration.
He added:
“Hopefully it will be thrown out using the Congressional Review Act and if not, it probably won’t hold up to legal challenges.”