The bill would reverse a reporting rule the IRS previously implemented
US lawmakers in the House of Representatives have introduced a resolution aimed at overturning an IRS rule that would require brokers to report cryptocurrency transactions. The measure, known as the “DeFi broker rule,” was approved in December and is set to take effect in 2027. If enacted, it would expand reporting requirements to include decentralized exchanges and mandate that brokers disclose transaction details, including the gross proceeds from crypto sales.
The Ways and Means Committee just passed H.J.Res. 25 – a resolution that repeals an unfair and unworkable cryptocurrency rule that would hamper cryptocurrency holders and the IRS with additional, burdensome paperwork. pic.twitter.com/HRJ1yWJSZA
— Ways and Means Committee (@WaysandMeansGOP) February 26, 2025
The resolution was advanced by the House Ways and Means Committee, which deals with financial policies, in a 26-16 vote on February 26. Supporters argue that the IRS regulation overreaches its authority and could negatively impact the digital asset industry.
Miller Whitehouse-Levine, CEO of the DeFi Education Fund, described the rule as both “unlawful and unconstitutional,” calling on lawmakers to support its repeal to protect financial innovation in the US.
Committee Chairman Jason Smith criticized the regulation, stating that it would place an unfair burden on DeFi brokers who do not typically collect the necessary transaction data. He also referenced former IRS Commissioner Charles Rettig’s concerns that the rule would generate excessive paperwork that the agency is not equipped to handle efficiently.
Smith further argued that the policy would hurt American crypto investors while giving an advantage to foreign digital asset platforms that are not subject to the same regulations.
If the resolution passes in the House, it will move to the Senate. Should it clear that hurdle, it would be sent to President Donald Trump, who could either sign it into law or veto it. With a growing number of pro-crypto lawmakers in Congress, industry leaders are hopeful that the US government will take a more favorable stance toward digital assets.
