The House of Representatives has passed HJ Res 25, which seeks to rescind the Biden Administration’s ‘Broker Rule’, which undermined digital assets.
The Senate is considering an identical document, SJ Res. 25.
Introduced soon after President Trump took over the White House, the Resolution will nulify a rule titled Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales and issued by the Internal Revenue Service (IRS) on December 30, 2024.
The rule requires persons effectuating decentralized financial (DeFi) transactions to report certain information regarding digital asset sales to the IRS.
The Resolution was co-sponsored by multiple Republicans and a single Democrat, Representative Shri Thanedar from Michigan.
House Financial Service Committee Chairman French Hill commented on the approval, calling the Biden policy a “clear example of government overreach that threatens to push American digital asset development overseas.”
“I look forward to working in a bipartisan manner to ensure the digital asset reporting requirements from the Infrastructure Investment and Jobs Act match the technology’s operation. We must bring legal and regulatory certainty to ensure these technologies and entrepreneurs can flourish here in the United States,” said French, adding that it was created by “anti-innovation midnight rulemaking.”
If signed into law, the joint resolution would nullify a requirement for entities implementing DeFi transactions to sales to the IRS. The objective is to remove the need to define DeFi software providers that never take custody of users’ assets as “brokers” who impose costly and burdensome reporting requirements that undermine privacy and technological progress in the United States.