Crypto Token Tracker logo Crypto Token Tracker logo
Coin Edition 2024-12-28 13:30:00

IRS’s DeFi Broker Rule Faces Backlash, Ripple CTO Highlights Risks

IRS’s new DeFi rule could undermine decentralization by imposing KYC requirements. The IRS’s “broker” definition conflicts with SEC and CFTC regulations in crypto. Ripple CTO warns that users may turn to unsafe, anonymous DeFi platforms. The IRS’s finalization of the second half of its controversial broker rule marks a significant shift in the regulatory landscape for decentralized finance (DeFi). Jake Chervinsky, the CLO of Variant Fund, stated that by the start of 2027, the rule would require a lot of DeFi front-ends to enforce Know Your Customer (KYC) processes for their users. This decision has sparked outrage in the crypto community, with critics arguing that the rule is an overreach of governmental power. Further, they stated that it violates constitutional rights, posing a threat to innovation in the DeFi space. IRS has finalized the second half of its broker rule, requiring most DeFi front-ends to KYC users starting in 2027. This unlawful rule is the dying gasp of the anti-crypto army on its way out of power. It must be struck down, either by the courts or the incoming administration. — Jake Chervinsky (@jchervinsky) December 27, 2024 The Rule’s… The post IRS’s DeFi Broker Rule Faces Backlash, Ripple CTO Highlights Risks appeared first on Coin Edition .

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.