Michele Korver, head of regulation at Andreessen Horowitz’s blockchain arm, A16z Crypto, has voiced strong opposition to the US Treasury and IRS’s newly issued broker reporting rule.

In an official statement, she claims that it jeopardizes the future of decentralized finance (DeFi) innovation in the United States.

Treasury’s “Midnight” Reporting Rule Lambasted

In a December 30 tweet, Korver outlined A16z’s support for a lawsuit filed by the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council. This lawsuit aims to block regulations stemming from the Infrastructure Investment and Jobs Act, which seeks to expand the definition of brokers in a way that could include DeFi trading front-ends.

These platforms, which allow users to interact with decentralized protocols, do not directly facilitate transactions, a distinction highlighted in the lawsuit. The groups argue that the rule imposes undue burdens on DeFi entities, violates the Administrative Procedure Act (APA), and exceeds the Treasury’s statutory authority.

Korver described the rulemaking process as a rushed “midnight” decision that undermines DeFi’s potential to deliver accessible, efficient, and consumer-focused financial services. She further stated the broader implications of the rule, warning that it could stifle innovation and drive DeFi operations offshore.

A16z Crypto even went on to reiterate that it would defend the sector through multiple avenues, including legal challenges and legislative advocacy with Congress and the incoming executive branch. Korver reassured developers that industry attorneys are working to protect this technology, stating that these efforts are critical to preserving the transformative potential of decentralized financial systems.

“We believe that this final rule exceeds Treasury’s sta