Three crypto industry groups — the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council — are suing the Internal Revenue Service to block new regulations that require decentralized finance (DeFi) entities to report customer information.

The IRS has been finalizing crypto tax regulations as part of the Biden Administration’s Infrastructure Investment and Jobs Act. The IRS says these new rules should help “close the information gap with respect to digital assets.”

The lawsuit, on the other hand, claims that this approach would unduly burden “DeFi trading front-ends,” — basically, online platforms that allow users to access crypto protocols but don’t necessarily “effectuate…