News 
January 1, 2025 
3 min. 
Michele Korver, head of regulation at a16z Crypto, has thrown her support behind a coalition of crypto organizations suing the Internal Revenue Service (IRS) and U.S. Treasury.
The lawsuit targets new decentralized finance (DeFi) regulations that critics say could harm the industry’s future. Korver announced her stance on Dec. 29 in a post on X (formerly Twitter), highlighting a16z’s belief in DeFi’s ability to transform financial services and the digital economy into something more accessible and consumer-focused.
a16z Push for Fair Regulations
The legal challenge emphasizes DeFi’s growing role as a disruptor in finance while calling for regulatory clarity that supports innovation. Korver argued that the new regulations exceed legal limits, violate the Administrative Procedure Act, and could stifle DeFi innovation in the U.S.
“DeFi builders should feel confident that industry attorneys are working hard to protect this technology,” Korver wrote. “We’ll keep fighting on all fronts—in the courts, with Congress, and with the next administration.”
Marisa Tashman Coppel, head of legal at the Blockchain Association, echoed similar concerns. She stated that the regulations impose intermediaries where none are needed, creating risks and undermining DeFi’s potential to foster an equitable financial system.
Industry Leaders Warn of Global Consequences
Texas Blockchain Council President Lee Bratcher warned that the IRS rule places unrealistic demands on the digital asset ecosystem. He expressed concern that such overreach could push innovation overseas, weakening the U.S.’s position in the global digital economy.
The DeFi Education Fund joined the criticism, describing the regulations as an effort to undercut crypto and DeFi advancements in the U.S. The rules are set to take effect on January 1, 2027, leaving the industry in a race to challenge them before implementation.
This lawsuit is shaping up to be a pivotal moment for DeFi, as advocates work to balance innovation with regulatory compliance while keeping the U.S. at the forefront of the digital financial revolution.
