Uniswap CEO calls for overturning the "DeFi Broker" rule through the "Congressional Review Act" or legal challenges

The latest ruling by the U.S. Internal Revenue Service (IRS) requires DEX to comply with the same reporting standards as traditional brokers, sparking sharp criticism from cryptocurrency executives and legal experts.

Uniswap's Chief Legal Officer (CLO), Katherine Minarik, recently stated: "There are many ways to challenge this rule, and it should absolutely be challenged." She questioned the IRS's rationale, believing that the ruling incorrectly classifies DeFi platforms as brokers even though they only play a part in the transaction process.

Uniswap CEO Hayden Adams also expressed similar concerns, stating his hope to overturn the ruling through Congressional Review Act (CRA) or legal challenges.

New regulations announced by the IRS on December 27 require brokers to report total earnings from digital asset transactions including cryptocurrencies, stablecoins and NFTs. This expanded scope now includes front-end DeFi platforms and will be implemented in 2027.

Critics argue that these requirements are not suitable for such platforms due to their decentralized nature which often lacks traditional reporting infrastructure.

Robin Singh, CEO of crypto tax platform Koinly warned that compliance could bring significant operational and technical burdens for decentralized businesses. "The decentralized structure of these platforms makes traditional reporting extremely challenging," Singh pointed out.

Bill Hughes, a lawyer at blockchain development company Consensys called this decision "all cost no benefit" criticizing its global impact requiring both American and international users to submit reports. 

He predicted that this regulation will face congressional review and may encounter opposition. Critics also slammed IRS for issuing rulings during holidays implying it was an intentional move to limit public response. Jake Chervinsky chief legal officer at venture capital firm Variant described this rule as an “illegal” measure taken by outgoing government’s “anti-cryptocurrency army”. He believes courts or new administration might overturn this ruling.