Andreessen Horowitz’s A16z Crypto Criticizes IRS and Treasury Department Over New DeFi Rules
Andreessen Horowitz’s blockchain arm, A16z Crypto, has raised concerns regarding the recent regulations introduced by the US Internal Revenue Service (IRS) and the Treasury Department targeting the decentralized finance (DeFi) industry.
In a post on X dated December 30, Michele Korver, the head of regulation at A16z, publicly announced the firm’s support for a legal challenge initiated by the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council against the government’s new broker rules for digital asset service providers. These organizations argue that the regulations pose a significant threat to the future of the US digital asset industry.
The DeFi Fund issued a statement, saying, “In order to protect DeFi and the digital asset industry more broadly, we sued Treasury and IRS [to] challenge their doomed rulemaking, which would essentially serve as a DeFi ban.”
A16z Stands Up for DeFi
Korver emphasized A16z Crypto’s belief in the transformative potential of DeFi to create a more inclusive, efficient, and consumer-centric financial system. The firm views the legal challenge as crucial to safeguarding DeFi’s growth and innovation in the United States.
According to Korver, the Treasury’s broker reporting rule, issued hastily, directly threatens the future of DeFi in the US, exceeding its authority, violating the Administrative Procedure Act, and potentially being unconstitutional.
A16z Crypto assured developers that it will continue to advocate for DeFi through various channels, including legal actions and engagement with lawmakers. Korver stated, “DeFi builders should feel confident that industry attorneys are working hard to protect this technology. We will keep fighting on all fronts – in the courts, and with the help of Congress and the incoming executive branch.”
Notable figures in the crypto space, such as Uniswap founder Hayden Adams, have echoed A16z’s concerns. Adams criticized the regulations, calling them a deliberate attempt to hinder DeFi in the final days of the current administration. He added, “Hopefully it’s thrown out using the congressional review act and if not it likely won’t stand up to legal challenges.”
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