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".

Bill Number: H.J.Res. 25
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Became Law
Became Law: Public Law 119-5
Latest Action: 2025-04-10: Became Public Law No: 119-5.
Last Updated: 2026-07-10T15:43:34Z

AI-Generated Summary

Purpose

This joint resolution (H.J. Res. 25) aims to disapprove a specific rule issued by the Internal Revenue Service (IRS), preventing it from taking effect. The rule in question requires brokers who facilitate sales of digital assets (like cryptocurrencies) to report gross proceeds from those transactions to the IRS for tax purposes.

Key Provisions

Disapproval of the Rule: Congress explicitly disapproves the IRS rule titled "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales," published in the Federal Register on December 30, 2024 (89 Fed. Reg. 106928).
Nullification: The rule is declared to have no force or effect, meaning it cannot be implemented or enforced.

Significant Changes to Existing Law

This resolution invokes the Congressional Review Act (a law allowing Congress to overturn federal agency rules within a certain timeframe after issuance).
It reverses the IRS's attempt to expand reporting requirements under the Internal Revenue Code, specifically targeting digital asset transactions that were previously not subject to the same broker-reporting rules as traditional securities.
No new laws are created; instead, it blocks an administrative regulation from becoming binding.

Potential Impacts

On Government Agencies: The IRS loses authority to enforce this reporting rule, potentially limiting its ability to track digital asset income for tax compliance without alternative measures.
On Citizens: Individuals and businesses involved in digital asset sales (e.g., cryptocurrency traders) may face reduced federal reporting obligations, which could simplify tax filing but also complicate IRS audits of unreported income.
On International Relations: Minimal direct impact, though it may influence U.S. alignment with global standards for digital asset taxation and anti-money laundering efforts.

Main Stakeholders Affected

IRS and Tax Authorities: Directly impacted by the loss of the reporting tool.
Brokers and Platforms: Digital asset exchanges and service providers (e.g., crypto brokers) are relieved from mandatory reporting of customer transactions.
Taxpayers and Investors: Users of digital assets benefit from avoiding additional paperwork, but it could lead to broader scrutiny if alternative IRS tracking methods emerge.
Congress: Demonstrates congressional oversight over executive agency actions.

Notable Legal, Constitutional, or Political Implications

Legal: Reinforces the Congressional Review Act as a mechanism for quick reversal of agency rules, ensuring Congress retains ultimate authority over regulatory expansions without needing new legislation.
Constitutional: Aligns with the separation of powers by checking executive branch rulemaking, though it highlights tensions between legislative and administrative functions.
Political: Signals congressional intent to limit federal oversight of emerging technologies like digital assets, potentially setting a precedent for future disputes over crypto regulation; the resolution was passed in the 119th Congress (starting 2025).

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Carey, Mike [R-OH-15]

Cosponsors (9)

Rep. Emmer, Tom [R-MN-6], Rep. Davidson, Warren [R-OH-8], Rep. Crank, Jeff [R-CO-5], Rep. Tenney, Claudia [R-NY-24], Rep. Thanedar, Shri [D-MI-13], Rep. Nunn, Zachary [R-IA-3], Rep. Kustoff, David [R-TN-8], Rep. Timmons, William R. [R-SC-4], Rep. Downing, Troy [R-MT-2]

Recent Actions

2025-04-10: Became Public Law No: 119-5.
2025-04-10: Became Public Law No: 119-5.
2025-04-10: Signed by President.
2025-04-10: Signed by President.
2025-04-01: Presented to President.
2025-04-01: Presented to President.
2025-03-27: Message on Senate action sent to the House.
2025-03-26: Passed Senate without amendment by Yea-Nay Vote. 70 - 28. Record Vote Number: 151. (Roll call 151)
2025-03-26: Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay Vote. 70 - 28. Record Vote Number: 151. (Roll call 151)
2025-03-26: Measure laid before Senate by motion. (consideration: CR S1856-1864)
2025-03-26: Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 70 - 28. Record Vote Number: 150. (Roll call 150)
2025-03-12: Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 27.
2025-03-11: Motion to reconsider laid on the table Agreed to without objection.
2025-03-11: On passage Passed by the Yeas and Nays: 292 - 132, 1 Present (Roll no. 71). (text: CR H1099) (Roll call 71)
2025-03-11: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 292 - 132, 1 Present (Roll no. 71). (text: CR H1099) (Roll call 71)

Bill Versions

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". — issued 2025-03-11 — PDF (4 pages)
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". — issued 2025-03-28 — PDF (1 pages)
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". — issued 2025-01-21 — PDF (2 pages)
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". — issued 2025-03-12 — PDF (4 pages)
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". — issued 2025-02-28 — PDF (4 pages)