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".

Plain-English Summary

This joint resolution is a formal effort by Congress to block a rule created by the Internal Revenue Service (IRS) that would require brokers involved in cryptocurrency and other digital asset transactions to report the gross proceeds from those sales to the IRS. The rule in question was designed to increase tax reporting transparency around digital assets — such as Bitcoin and other cryptocurrencies — by treating digital asset brokers similarly to how traditional financial brokers (like stock brokers) are already required to report customer transactions. Congress is using a law called the Congressional Review Act, which gives lawmakers the authority to reject rules issued by federal agencies before they take full effect.

If this resolution were to pass and become law, the IRS rule would be nullified, meaning brokers facilitating digital asset sales would not be subject to this particular reporting requirement. This would affect a wide range of people and businesses, including cryptocurrency exchanges, digital asset platforms, and the millions of Americans who buy and sell cryptocurrencies. Supporters of blocking the rule generally argue it is overly broad or burdensome, while those who support the rule contend it helps ensure people accurately report taxable income from digital asset transactions.

Currently, the resolution has been passed by the Senate and sent to the House of Representatives, where it is awaiting further action. It is worth noting that for the resolution to actually block the IRS rule, it would need to pass both chambers of Congress and either be signed by the President or have a presidential veto overridden.