The Blockchain Association has expressed strong concerns over the Internal Revenue Service's (IRS) proposed broker rule, citing significant administrative and financial burdens it could impose on the cryptocurrency sector. The group argues that the requirements are overly demanding and not aligned with the realities of digital finance management.

The proposed rule could generate an overwhelming 8 billion tax forms annually, requiring 4 billion hours of labor to process and costing $254 billion yearly. These figures starkly contrast with the IRS's initial estimates of $136.35 million. The Association believes these requirements are disproportionate to the tax gap they aim to address, which stands at approximately $10 billion.

The Blockchain Association has long been critical of the IRS's approach, submitting a detailed 39-page document last year outlining various objections to the IRS's proposed regulations. This latest objection highlights the tension between regulatory bodies and the rapidly evolving blockchain sector.

The proposed rules have not been well received in the crypto community, with many regarding them as unrealistic and excessive. The executive director at Coin Center, Jerry Brito, has explained that these requirements are almost impossible to implement, especially within decentralized platforms. The high costs of compliance have cast doubts on the viability of these measures.