Three prominent crypto industry groups, including the DeFi Education Fund and the Blockchain Association, have filed a lawsuit against the IRS to contest new regulations mandating decentralized finance entities to report customer information. The IRS argues that these rules aim to close the information gap in digital asset transactions. However, the lawsuit claims that such regulations unfairly burden DeFi platforms, which do not function as traditional brokers. The Blockchain Association's legal head emphasized that these rules infringe on individual privacy rights and could drive the technology offshore.