Should Congress block the IRS rule requiring cryptocurrency brokers to report digital asset sales?

Economy and Taxation
Providing for congressional disapproval relating to "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales" (H.J.Res. 25)
This bill Became Law
Bill Summary

The Congressional Disapproval of IRS Digital Asset Reporting Rule seeks to nullify a rule issued by the Internal Revenue Service (IRS) requiring brokers to report gross proceeds from digital asset sales, meaning that people need to report their proceeds, including what comes from cryptocurrency. The rule is aimed at increasing tax compliance for cryptocurrency transactions. This resolution, if passed, would prevent the rule from taking effect, arguing that it imposes excessive burdens on brokers and crypto investors. Sponsor: Rep. Mike Carey (Republican, Ohio, District 15)
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Opponents say

•      "[The resolution] would push more people to conduct crypto trading using decentralized platforms, which operate without that traditional oversight, and… attract nefarious actors to fund illicit activities." Source: Rep. Brad Schneider (Democrat, Illinois, District 10) 

•      "You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return. Income from digital assets is taxable. For U.S. tax purposes, digital assets are considered property, not currency. A digital asset is stored electronically and can be bought, sold, owned, transferred or traded." Source: IRS

Proponents say

•      "The IRS Broker Rule hinders American innovation in a globally competitive environment, infringes on the privacy of our constituents, and overwhelms the IRS with new filings. The IRS must focus on effectively handling its current duties and obligations, not sifting through billions of new, useless information returns. I ask all my colleagues to join me in our effort to overturn this misguided rule so that the U.S. can remain the global leader of the burgeoning crypto industry." Source: Rep. Mike Carey (Republican, Ohio, District 15), sponsor of this resolution 

•      "The IRS stretched its directives from Congress in the 2021 infrastructure law to enact a cryptocurrency agenda and unnecessarily regulate the providers of digital wallets. The winners of this last-minute rule are foreign digital asset companies who are exempt from the burdensome requirements. The losers are the roughly 1 in 4 Americans who own cryptocurrency. “Not only is it unfair, but it’s unworkable. DeFi brokers do not even collect the information from users needed to implement this rule." Source: Rep. Jason Smith (Republican, Missouri, District 8), Chairmen of the Ways and Means House Committee 

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