Catenaa, Thursday, January 2, 2025 – Andreessen Horowitz’s blockchain division, A16z Crypto, has joined a legal fight against the U.S. Treasury and IRS, opposing a broker reporting rule that critics argue threatens the future of decentralized finance (DeFi).
In a statement on December 30, Michele Korver, head of regulation at A16z Crypto, condemned the rule as a rushed “midnight” decision that could stifle innovation and push DeFi operations offshore. The rule stems from the Infrastructure Investment and Jobs Act and seeks to broaden the definition of brokers to include DeFi platforms.
Korver affirmed A16z’s support for a lawsuit filed by the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council. The lawsuit claims the rule imposes undue burdens on DeFi, violates the Administrative Procedure Act (APA), and exceeds statutory authority.
“This final rule exceeds Treasury’s statutory authority, violates the APA, and is unconstitutional,” Korver stated, adding that A16z would pursue legal and legislative avenues to protect DeFi.
Industry leaders echoed these sentiments. Jake Chervinsky of the Blockchain Association highlighted the swift legal response as evidence of the crypto industry’s growing policy infrastructure. Uniswap founder Hayden Adams criticized the rule for hindering DeFi innovation, while Uniswap’s CLO Katherine Minarik called it a burdensome overreach aimed at unnecessary surveillance of crypto transactions.
The lawsuit marks a pivotal clash over regulatory measures that could reshape DeFi’s trajectory in the US, with implications for the broader crypto ecosystem.
