US President Donald Trump signed into law H.J.Res.25 (Congressional Review Act Disapproval Resolution on Cryptocurrency Broker Reporting from the IRS) on 10 April 2025, a joint resolution of disapproval aimed at overturning the final regulations (T.D. 10021) on digital asset reporting issued by the US Department of Treasury Department and Internal Revenue Service (IRS) on 30 December 2024.
The Senate approved the resolution on 26 March 2025.
The regulations require non-custodial brokers facilitating digital asset sales or exchanges (e.g., brokers offering trading front-end services) to file information returns and provide payee statements reporting gross proceeds from transactions, starting 1 January 2027.
Background
On December 27, 2024, the U.S. Department of the Treasury (Treasury) released final regulations creating reporting requirements for trading front-end service providers that work directly with users on digital asset transactions (i.e., DeFi Brokers).
- These regulations were developed as part of the Biden Administration’s Infrastructure Investment and Jobs Act.
The new rule would require DeFi Brokers to file a Form 1099 and subject DeFi Brokers to the same reporting rules as brokers for securities and custodial digital asset trading platform operators.
- However, unlike securities brokers or centralised brokers of custodial digital assets – which operate more like banks – DeFi Brokers are decentralised, do not collect the information from users needed to implement this rule, and are not the same as traditional securities brokers.
Since the rule was issued, stakeholders have filed a lawsuit against the IRS and Treasury, asserting that the IRS and Treasury exceeded their statutory authority, violated the Administrative Procedure Act, and infringed on the privacy of DeFi Brokers and users.
- Stakeholders claim that the rule would cripple the digital asset industry, place unlawful burdens on software developers, and stifle innovation at the cost of American entrepreneurship.
House Joint Resolution 25
- The Joint Resolution would disapprove of and effectively repeal the rule submitted by the IRS relating to “Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales.”
- The Joint Resolution would also wipe the slate clean for Congress to enact the Trump Administration’s desired policy related to DeFi Brokers.
Earlier, the IRS and the Treasury Department published “Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realised and Basis for Digital Asset Transactions” on 9 July 2024. This document contains final regulations regarding information reporting and the determination of the amount realised and the basis for certain digital asset sales and exchanges.
