The Blockchain Association is advocating for the modernization of the United States' digital asset tax rules, arguing that the current IRS property-based tax framework is not suitable for routine blockchain activities such as staking and on-chain transactions. The industry has detailed its proposal in a new policy paper, seeking to defer taxes until conversion to fiat currency and to provide clearer exemptions for protocol operations, aiming to reduce compliance burdens as cryptocurrencies expand into payments and decentralized finance (DeFi). Meanwhile, the IRS is stepping up enforcement and reporting requirements, with the blockchain industry warning that outdated rules could stifle innovation in the United States.