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
H.J.Res. 25 is a congressional disapproval resolution under the Congressional Review Act that overturns an Internal Revenue Service rule titled “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales.” The resolution states that the IRS rule, published at 89 Fed. Reg. 106928 on December 30, 2024, shall have no force or effect if the joint resolution is enacted. In practical terms, the measure blocks the IRS from implementing that specific digital-asset broker reporting requirement.
The bill’s effect is to prevent the new IRS reporting framework from taking effect, thereby preserving the status quo for brokers involved in digital asset sales and limiting additional federal tax-reporting obligations tied to cryptocurrency transactions. Because it is a congressional disapproval resolution, it does not amend the underlying tax code directly; instead, it nullifies the agency rule and bars the agency from issuing a substantially similar rule unless authorized by subsequent law.
The general sentiment reflected in the vote history suggests substantial support in the House and narrower but sufficient support in the Senate to advance and enact the resolution. The House passed the measure by a wide margin, while the Senate votes on proceeding and on the resolution itself were 70-28, indicating bipartisan support but also meaningful opposition.
The main point of contention appears to be whether the IRS should require gross-proceeds reporting for digital asset brokers. Supporters likely viewed the rule as an overreach or an unnecessary burden on the cryptocurrency industry, while opponents likely favored the rule as a tax compliance and enforcement tool to improve reporting of digital asset sales. The debate therefore centered on balancing tax administration and transparency against regulatory burden and the treatment of the emerging crypto market.
Impact
This joint resolution nullifies the IRS final rule on gross proceeds reporting for brokers facilitating digital asset sales and prevents it from taking effect. It affects federal tax reporting obligations for cryptocurrency brokers and related intermediaries, but does not itself create a new statutory reporting regime; instead, it uses the Congressional Review Act to disapprove an agency regulation and leave the prior legal framework in place.
Sentiment
The voting pattern indicates generally favorable sentiment toward the resolution among lawmakers who were concerned about the IRS rule, with strong House passage and a 70-28 Senate margin on both the motion to proceed and final passage. The support appears to have crossed party lines, but the recorded opposition shows that a significant minority favored keeping the IRS reporting rule in place for tax compliance purposes.
Contention
The central controversy was the IRS’s authority and policy choice to require gross proceeds reporting for digital asset sales. Supporters of the resolution likely argued that the rule would impose excessive compliance costs, create burdens for brokers, and potentially stifle innovation in the cryptocurrency sector. Opponents likely argued that the rule was necessary to improve tax enforcement, reduce underreporting of crypto transactions, and ensure parity with other financial reporting requirements. The divide was therefore between crypto-industry/regulatory-burden concerns and tax-administration/enforcement concerns.
Same As
A joint resolution 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".
Related
Providing for consideration of the joint resolution (H.J. Res. 25) 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"; providing for consideration of the bill (H.R. 1156) to amend the CARES Act to extend the statute of limitations for fraud under certain unemployment programs, and for other purposes; providing for consideration of the bill (H.R. 1968) making further continuing appropriations and other extensions for the fiscal year ending September 30, 2025, and for other purposes; and for other purposes.