Uniswap CEO calls for passage of the Congressional Review Act or legal challenge to overturn “DeFi Broker” rules

The latest ruling by the Internal Revenue Service (IRS) requiring DEXs to adhere to the same reporting standards as traditional brokers has drawn sharp criticism from cryptocurrency executives and legal experts. “There are many ways to challenge this rule, and it should absolutely be challenged,” Uniswap Chief Legal Officer (CLO) Katherine Minarik said recently. She questioned the IRS’s reasoning, arguing that the ruling incorrectly classified DeFi platforms as brokers, even though their role is only part of the trading process. Similar concerns were expressed by Uniswap CEO Hayden Adams, who said he hopes to overturn the ruling through the Congressional Review Act (CRA) or a legal challenge. New regulations published by the IRS on December 27 require brokers to report the total proceeds of digital asset transactions, including cryptocurrencies, stablecoins, and NFTs. This expanded scope now includes front-end DeFi platforms and will be implemented in 2027. Critics believe that these requirements are not suitable for the decentralized nature of such platforms, which often lack the infrastructure for traditional reporting. Robin Singh, CEO of crypto tax platform Koinly, warned that compliance could place a huge operational and technical burden on decentralized businesses. “The decentralized structure of these platforms makes traditional reporting extremely challenging,” Singh noted. Bill Hughes, an attorney at blockchain development company Consensys, called the ruling “all costs and no benefits” and criticized its global reach, requiring both U.S. and international users to file reports. He predicted that the regulation will face congressional scrutiny and could face opposition. Critics also slammed the IRS for issuing the ruling during the holiday season, suggesting it was intentionally limiting public reaction. Jake Chervinsky, chief legal officer at venture capital firm Variant, called the rule an “illegal” measure taken by the outgoing administration’s “anti-crypto brigade.” He believes the ruling could be overturned by a court or a new administration.