The US Internal Revenue Service (IRS) has proposed new tax rules that could have a significant impact on decentralized finance (DeFi) platforms. The proposed rules would require DeFi platforms to report transactions to the IRS, which could make it difficult for these platforms to operate. The Blockchain Association, a trade group representing the blockchain industry, has warned that the proposed rules could “kill” DeFi in the US.

The proposed rules would require DeFi platforms to report transactions that exceed $10,000 to the IRS. This would be done using a new form called Form 8300, which is currently used by businesses to report cash transactions. The Blockchain Association argues that the proposed rules are not appropriate for DeFi platforms, as they are not designed to handle the volume of transactions that these platforms generate.

The Blockchain Association has called on the IRS to reconsider the proposed rules and to work with the blockchain industry to develop more appropriate regulations. The association argues that the proposed rules could stifle innovation in the blockchain industry and could drive DeFi platforms out of the US.

The article from Decrypt notes that the proposed rules are part of a broader effort by the US government to crack down on tax evasion. However, the Blockchain Association argues that the proposed rules are too broad and could have unintended consequences. The association also notes that DeFi platforms are still in their early stages of development and that they need regulatory clarity to grow and innovate.

The article concludes by noting that the proposed rules are still in the comment period and that the IRS is accepting feedback from the public. The Blockchain Association has encouraged its members to submit comments to the IRS and to voice their concerns about the proposed rules. 

I urge everyone to email the IRS to voice their concerns.  We as a community can move mountains