Can IRS track DeX?

As a cryptocurrency enthusiast and investor, I'm curious about the privacy and security aspects of decentralized exchanges, or DeXs. With the increasing scrutiny from regulatory bodies like the IRS, I'm wondering: Can the IRS actually track transactions that occur on DeXs? How do these platforms ensure user anonymity and privacy, and are there any potential loopholes that the IRS could exploit to trace transactions? Additionally, what are the legal implications for users if their DeX transactions are somehow traced by the IRS? I'm looking for a comprehensive answer that addresses these concerns and provides some insight into the current regulatory landscape surrounding DeXs.