Blockchain Association Opposes IRS Broker Rules Citing Excessive Burden

According to Odaily, the Blockchain Association has voiced its opposition to the broker rules proposed by the U.S. Internal Revenue Service (IRS). The association argues that these regulations would impose an undue burden on investors, cryptocurrency companies, and the IRS itself. The association cites the Paperwork Reduction Act, stating that government regulatory bodies should not impose unnecessary paperwork requirements on individuals and entities within the financial system. The letter mentions that if these rules are passed, they would result in an additional 8 billion tax forms, wasting 4 billion hours of processing time, and annual compliance costs would reach $254 billion. This is a stark contrast to the IRS's initial estimate of total compliance costs being $136 million. Furthermore, the association believes that an annual compliance cost of $254 billion is unreasonable for a market that at most generates a $10 billion tax gap. In 2023, the association submitted a 39-page letter detailing comprehensive objections to these regulations. They believe these rules are extremely difficult to comply with for decentralized financial protocols, reflecting the government's misunderstanding of blockchain and cryptocurrency.