Golden Finance reported that Alex Thorn, head of research at Galaxy Digital, said that if the U.S. Internal Revenue Service (IRS)’s regulations that identify DeFi front-ends as brokers are not withdrawn, the DeFi industry will face three options: comply with the IRS’s reporting requirements and accept the broker’s It was determined that an attempt was made to prevent users from the United States from upgrading smart contracts and generating revenue. It was reported yesterday that the U.S. Internal Revenue Service (IRS) issued final regulations requiring brokers to report digital asset transactions and bring DeFi platforms into the existing tax framework. The rule, which takes effect in 2027, will force brokers to disclose transaction details, including gross proceeds and taxpayer information. Brokers must start collecting and reporting data in 2026. The IRS estimates that 650 to 875 DeFi brokers will be affected, potentially affecting as many as 2.6 million taxpayers. These regulations mainly target trading front-end service providers, such as DEXs that facilitate digital asset trading. According to the IRS, these platforms act as intermediaries, and classifying them as brokers will help ensure tax compliance.