Andersen Horowitz's blockchain arm, A16z encodinghas criticized the US Internal Revenue Service (IRS) and the Treasury Department about them New DeFi rules.
In a Dec. 30 post on X, Michelle Korver, head of regulation at A16z, announced It supports the legal challenge led by the Blockchain Association, the DeFi Education Fund and the Texas Blockchain Council.
The groups argue that the government's new brokerage rules for digital asset service providers threaten the future of the US digital asset industry.
Defay fund expressed:
“In order to protect DeFi and the digital asset industry more broadly, we sued the Treasury and the IRS (to) challenge their doomed rules, which essentially act as a ban on DeFi.
A16z defends DeFi
Korver explained that A16z Crypto's support for the lawsuit is rooted in the belief that DeFi can create a more inclusive, efficient and consumer-centric financial system. The company sees this legal challenge as necessary to protect the future of DeFi in the United States.
According to Korver, the US Treasury issued a “midnight” brokerage report rule that directly threatens and undermines the future of DeFi innovation in the US.
Corver explained that the rule exceeds the statutory authority of the Treasury Department, violates the Administrative Procedure Act (APA) and is unconstitutional.
A16z Crypto assured developers that it will continue to support DeFi on multiple fronts, including court actions and legal engagement. He stated:
DeFi developers should be sure that industry lawyers are working hard to protect the technology. We will continue to fight on all fronts – in the courts and with the help of Congress and the future executive branch.
Meanwhile, significant figures in the crypto space have reflected A16z's concerns. Unswap the founder Hayden Adams It criticized the regulations, calling them a deliberate attempt to block DeFi in the final days of the current administration.
he has been added:
“Hopefully it will be thrown out using the Congressional Review Act, and otherwise it probably won't withstand legal challenges.”
