The US Treasury and IRS have released broker rules for digital asset providers, requiring DeFi protocols to conduct KYC procedures. Industry experts criticize the new provision for being unlawful. Brokers must report user tax by Jan. 1, 2025, with DeFi brokers required to comply by Jan. 1, 2027. There are exclusions and a transition period, but backlash from the community is expected, with potential lawsuits and Congressional review.

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