GalaxyDigital's research director Alex Thorn stated that if the US Internal Revenue Service (IRS) does not revoke the regulation recognizing DeFi front-end as a broker, the DeFi industry will face three choices: complying with IRS reporting requirements and accepting broker recognition, attempting to block users from the US, and abandoning smart contract upgrades and revenue generation. Yesterday, it was reported that the US Internal Revenue Service (IRS) has issued final regulations requiring brokers to report digital asset transactions and include DeFi platforms in the existing tax framework. This rule will come into effect in 2027 and will require brokers to disclose transaction details, including total earnings and taxpayer information. @tiramissu  @eseo9763

DeFi industry faces tough choices due to IRS regulations. Compliance, user restrictions, or sacrificing upgrades are on the table. How will platforms adapt to the new reporting requirements? Time will tell.