Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales".
Summary
What This Bill Does
This joint resolution uses the Congressional Review Act to nullify the Internal Revenue Service rule titled "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales," published at 89 Fed. Reg. 106928 on December 30, 2024. The rule addressed reporting for brokers that regularly facilitate digital-asset sales, including decentralized-finance transaction services. Once disapproved, the rule has no force or effect and the IRS cannot issue a substantially similar rule without new congressional authorization.
Who Benefits and How
DeFi trading front-end providers, digital asset platforms, and other broker-like services that would have had to collect and report gross-proceeds information benefit because the resolution removes that specific reporting rule. They avoid building reporting systems, collecting customer transaction information for the rule, furnishing payee statements, and filing information returns under this regulation. Digital-asset users who value reduced third-party tax reporting may also benefit through less mandatory platform-level reporting of covered sales.
Who Bears the Burden and How
The Internal Revenue Service and Treasury Department tax-compliance programs bear the burden because they lose the specific rule designed to obtain standardized gross-proceeds data from digital-asset intermediaries. Federal taxpayers and compliant digital-asset investors may bear indirect enforcement risk if less third-party reporting makes underreported digital-asset gains harder to detect. Congress or Treasury would need a new or different legal path to impose a substantially similar reporting framework.
Key Provisions
- Blocks the IRS gross-proceeds reporting rule for brokers that regularly provide services effectuating digital asset sales.
- Limits the IRS from enforcing that December 30, 2024 rule or issuing a substantially similar replacement without congressional authorization.
- Directs the practical effect toward reducing platform-level reporting duties for covered digital-asset transaction services.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Nullifies the Internal Revenue Service rule requiring gross-proceeds reporting by brokers that regularly provide services effectuating digital asset sales.
Key Policy Areas
Taxation, Finance, Technology
Primary Purpose
Nullifies the Internal Revenue Service rule requiring gross-proceeds reporting by brokers that regularly provide services effectuating digital asset sales.
Policy Domains
Main disapproval provision
Identified Gains
- DeFi trading front-end providers
- Digital asset platforms
- Digital asset users
Identified Costs
- Internal Revenue Service
- Treasury Department tax-compliance programs
- Federal taxpayers
Sponsors
Legislative Progress
Signed into LawSigned by President.
Became Public Law No: 119-5.
Presented to President.
Message on Senate action sent to the House.
Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay …
Measure laid before Senate by motion. (consideration: CR S1856-1864)
Passed Senate without amendment by Yea-Nay Vote. 70 - 28. …
Motion to proceed to consideration of measure agreed to in …
Received in the Senate. Read twice. Placed on Senate Legislative …
Motion to reconsider laid on the table Agreed to without …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
DeFi trading front-end providers, Digital asset platforms
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology