A16z opposes new Treasury rule on DeFi reporting

Andreessen Horowitz’s blockchain division, A16z Crypto, has joined the legal battle against the U.S. Treasury and IRS over new broker reporting rules that threaten decentralised finance (DeFi) innovation.

Michele Korver, head of regulation at A16z Crypto, strongly criticised the rule, calling it a rushed “midnight” decision that exceeds the Treasury’s authority and jeopardises the potential of DeFi.

The controversy centers on a regulation stemming from the Infrastructure Investment and Jobs Act, which seeks to broaden the definition of brokers to include DeFi platforms.

Critics argue this misclassification imposes undue burdens on DeFi entities, violates the Administrative Procedure Act (APA), and exceeds statutory limits.

“We believe that this final rule exceeds Treasury’s statutory authority, violates the Administrative Procedure Act, and is unconstitutional,” Korver stated, emphasising the broader implications of the rule.

“We will keep fighting on all fronts – in the courts, and with the help of Congress and the incoming executive branch,” she added, reassuring developers that attorneys are committed to protecting DeFi.

The DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council have filed a lawsuit to block the rule.

Jake Chervinsky, head of policy at the Blockchain Association, praised the swift legal response and noted the crypto industry’s growing policy infrastructure.

“The industry’s ability to push back against regulatory overreach has significantly matured,” he remarked.

Other crypto leaders echoed these concerns.

Uniswap (CRYPTO:UNI) founder Hayden Adams criticised the timing and intent of the rule, while Uniswap CLO Katherine Minarik argued that it misclassifies DeFi technology, overburdens the IRS, and risks stifling DeFi entirely.

“DeFi is the antidote to debanking. The last thing we can afford to do is try to choke it to death,” she stated.