Decrypt’s Art, Fashion, and Entertainment Hub. Discover SCENEA draft version of an IRS form spread fear and uncertainty across the crypto industry this week, with sections of the document leading some to believe that American DeFi users may soon be required to report their self-custodial wallet addresses to the federal government.Come 2025, the document, Form 1099-DA, will become a mandatory filing for any crypto transaction deemed by the IRS to have sourced from a broker. What exactly that means is still unclear. Crypto exchanges will all but certainly be considered brokerages by the IRS; in November, crypto lobbying groups expressed concern that the tax enforcer could also be angling to classify DeFi traders as brokers as well.That fear now appears to be confirmed. The draft IRS 1099-DA form features a box where filers must clarify what type of broker was involved in the crypto transaction being reported. One box reads “Unhosted Wallet Provider”—meaning a self-custodial crypto address not affiliated with any third party.Legal experts in the crypto community immediately took the news to mean that the IRS is fully planning to classify DeFi protocols—which run on automated software and were designed in part to protect user privacy—as brokerage firms akin to Charles Schwab or Robinhood.ADADThe prospect that Uniswap users might soon have to disclose as much personal information as customers of traditional brokerage firms quickly unsettled many in the crypto industry, causing builders and traders alike to fret that the move could kill the concept of pseudonymity“The inclusion of open source wallet software providers who in no way broker transactions as ‘brokers’ is unconstitutional under both the First and Fourth Amendments,” a spokesperson for crypto lobbying group Coin Center told Decrypt

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