WASHINGTON– This week, Representative Mike Carey (OH-15) introduced a CRA resolution which would roll back the Internal Revenue Service’s controversial Digital Assets Sale and Exchanges Rule, also known as the IRS Broker Rule. Senator Ted Cruz (TX) introduced companion legislation in the Senate.
Carey said, “The Biden administration’s digital asset broker rule represented clear overreach from the IRS. If it is enforced, this rule will result in a tidal wave of new digital asset returns, overwhelming IRS resources—a truth even acknowledged by former President Biden’s own IRS officials. We are proud to work with Senator Cruz on this important effort to avoid needlessly complicating the tax-filing process.”
The Broker Rule would result in over 8 billion new digital asset returns on Form 1099-DA.
Sen. Cruz said, “The Biden administration’s rule attempts to drive American cryptocurrency innovation overseas. This regulation undermines the purpose of DeFi technology: to enable individuals to freely buy, sell, and exchange digital assets. America’s goal should be to prioritize innovation, and this rule is the opposite. I call upon Congress to expeditiously take up this resolution, pass it, and send it to the President.”
Last month, Carey sent a letter to former Secretary of the Treasury Janet Yellen and IRS Commissioner Danny Werfel expressing his opposition to the expansion of the broker rule.
Background
The Congressional Review Act (CRA) allows Congress to disapprove of a final rule issued by a federal agency. If the rule is disapproved of using the CRA mechanism, it is nullified. Additionally, the issuing agency is prohibited from reissuing a “substantially similar” rule, unless Congress passes legislation allowing it.
The CRA resolution is available in full here.