# Plain Language Summary: Congressional Disapproval of IRS Digital Asset Reporting Rule

This bill is Congress's way of rejecting a new IRS rule about cryptocurrency and digital asset reporting. Here's what's actually happening: The IRS created a rule requiring brokers and platforms that handle cryptocurrency sales to report information about those transactions to the government, similar to how stock brokers report stock sales. This bill says Congress doesn't want that rule to go into effect.

The rule would have required companies like crypto exchanges to tell the IRS about the total amount of money people make when they sell digital assets like Bitcoin or Ethereum. The IRS wants this information so they can track whether people are properly reporting their gains on their taxes. Right now, many crypto transactions fly under the radar because there's no automatic reporting system like there is for stocks or bonds. If this rule had taken effect, it would have created that reporting system.

If Congress passes this bill, the IRS rule gets blocked and won't become law. That means crypto exchanges won't be required to report your sales to the government automatically. For people who use cryptocurrency, this means the IRS will have a harder time tracking your transactions and verifying whether you've paid taxes on your gains. For the government, it means less information to catch people who might be avoiding taxes on their crypto profits. Supporters of the bill argue it protects privacy and prevents government overreach, while opponents say it makes it easier for people to dodge taxes on their digital asset earnings.

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Internal Revenue Service relating to "Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales".

Cruz, Ted

This joint resolution nullifies the rule titled Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales and issued by the Internal Revenue Service (IRS) on December 30, 2024. The rule generally requires persons effectuating decentralized financial (DeFi) transactions to report certain information regarding digital asset sales to the IRS.