The Blockchain Association, a blockchain advocacy group, opposes the broker rules proposed by the Internal Revenue Service (IRS), saying they would place an undue burden on investors, cryptocurrency companies and the IRS itself. Citing the Document Reduction Act, the association noted that government regulators should not impose unnecessary paperwork requirements on individuals and entities in the financial system. The letter mentions that if the rules are passed, 8 billion tax forms will be added, 4 billion hours of processing time will be wasted, and compliance costs $254 billion per year. This compares to the IRS's early estimate of a total compliance cost of $136 million for the new rules. Additionally, the association argues that the $245 billion annual compliance cost is unreasonable for a market that generates a tax gap of up to $10 billion. In 2023, the association submitted a 39-page letter detailing its sweeping objections to the regulations, arguing that the rules are extremely difficult to comply with decentralized financial protocols and reflect a government misunderstanding of blockchain and cryptocurrencies.