To watch Rep. Carey’s remarks at the Ways and Means markup hearing, click here or on the image above.
WASHINGTON, D.C. – On Wednesday, legislation introduced by U.S. Representative Mike Carey (OH-15) to overturn the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges Rule, otherwise known as the “IRS Broker Rule,” advanced out of the House Ways and Means Committee during a markup hearing.
“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,” Rep. Carey said. “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.”
“Last year, the IRS unilaterally reclassified certain businesses as ‘brokers,’ putting taxpayer privacy at risk and bombarding millions of Americans with extra paperwork. I want to thank Representative Carey for introducing this important resolution to wipe the slate clean and roll back the IRS’s overreaching DeFi Broker Rule. It will protect taxpayers and businesses from unnecessary regulations and burdensome reporting requirements,” Rep. Jason Smith (MO-08), Chairman of the House Ways and Means Committee, said.
BACKGROUND:
The IRS Broker Rule, which requires self-custodial digital asset wallet providers and other developers of noncustodial software to submit information reports to the IRS, was finalized at the end of 2024.
The rule far exceeds the scope of the Infrastructure Investment and Jobs Act’s (IIJA) instructions to IRS and the Department of the Treasury regarding the establishment of rules for digital asset exchanges.
This Congressional Review Act of Disapproval would allow Congress to rescind the rule and stay in line with the Congressional intent outlined in the IIJA. After passing out of the Ways and Means Committee, the legislation now heads to the full U.S. House of Representatives for consideration.
This legislation is supported by a number of groups, including: the Blockchain Association, Coin Center, Crypto Council for Innovation, the Digital Chamber, Americans for Tax Reform, Shareholder Advocacy Forum, Citizen Outreach, Open Competition Center, Less Government, Property Rights Alliance, Consumer Choice Center, Consumer Actions for a Strong Economy, Americans for Prosperity, American Business Defense Council, Frontiers of Freedom, Small Business and Entrepreneurship Council, Rio Grande Foundation, Center for a Free Economy, Taxpayer Protection Alliance, American Consumer Institute, Competitive Enterprise Institute, and Pelican Institute.
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