- Michele Korver supported suing the IRS and the U.S. Treasury
- This is from a coalition of pro-crypto organizations against over-regulating DeFi
- Korver believes this argues against the very idea of the DeFi
- And it hinders the development of the DeFi technology
Michele Korver, head of regulation at venture capital fund a16z Crypto, supported a coalition of pro-crypto organizations suing the Internal Revenue Service (IRS) and U.S. Treasury against the new over-regulated rules for DeFi.
They believe it goes against the very principles of the industry and limits the development of technologies that promise to make finance accessible, efficient, interoperable, dependable, and consumer-focused.
More About New Regulations From the IRS and U.S. Treasury and Opposition at DeFi
The IRS and U.S. Treasury are imposing new, stricter regulations defining DeFi as brokers and requiring strict reporting and Know Your Customer (KYC) compliance.
In turn, this has sparked outrage from a number of pro-crypto companies who see this as a subversion of the core principles of DeFi and a barrier to the development of the technology that makes it possible.
The result was a class action lawsuit filed on December 27 by the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council.
Michele Korver supported and commented:
“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.”
Marisa Tashman Coppel, head of legal at the Blockchain Association added:
“But the government is now forcing intermediaries where none exist, creating more risk and more opportunity for inequity.”
Also, DeFi Education Fund:
“Yet another attempt by the outgoing administration to undermine the crypto industry and DeFi innovations in the United States.”
Conclusion
The role of crypto in general and DeFi in particular is growing, which is causing institutions to become more regulated, and here opinions are rightly divided.
On the one hand, there should always be a responsible person in case of misuse or other problems, on the other hand, the approach used by DeFi to solve the accumulated problems of the classical financial system makes it difficult.
However, this is a pretty strong precedent and its outcome is likely to become very significant, so worth keeping an eye on. Be aware and stay tuned.
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