Congress kills IRS rule requiring crypto brokers to report sales

What it does

This resolution kills an IRS rule requiring cryptocurrency brokers to report the gross proceeds from digital asset sales to the tax agency. The rule was designed to improve tax compliance by giving the IRS visibility into crypto transactions. By disapproving it, Congress prevents brokers from having to file these reports, making it harder for the IRS to track and tax crypto income.

Why we flagged it

The bill's sole function is to block an IRS reporting requirement for cryptocurrency brokers. It is a Congressional Review Act disapproval resolution that removes a tax-administration rule without replacing it, effectively deregulating broker reporting obligations on digital asset sales.

What the text implies

• Eliminates IRS ability to cross-reference broker-reported proceeds against individual tax returns, reducing detection of unreported crypto income and capital gains.
• Shifts tax-reporting burden entirely to individual traders, who may lack technical knowledge to calculate basis, holding periods, and tax liability on complex digital asset transactions.
• May disproportionately benefit high-volume traders and institutional crypto platforms that would have faced compliance costs under the rule.
• Weakens the IRS's capacity to enforce the existing tax code on a rapidly growing asset class, potentially reducing federal tax revenue from digital asset transactions.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary taxpayers lose IRS enforcement capacity against high-income crypto traders and exchanges that would otherwise face reporting requirements. The rule was a compliance and transparency measure; killing it reduces tax collection and shifts the burden of voluntary disclosure onto individual filers, many of whom lack expertise to self-report complex digital asset gains.

Who stands to gain

• cryptocurrency exchanges and brokers
• high-net-worth crypto traders
• digital asset trading platforms

Named in the bill

Internal Revenue Service (IRS), U.S. House of Representatives, U.S. Senate, cryptocurrency brokers, digital asset exchanges

Where it stands

9 cosponsors: 8 Republicans, 1 Democrats.

• Jan 21, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jan 21, 2025 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
• Feb 26, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Feb 26, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported by the Yeas and Nays: 26 - 16”
• Mar 11, 2025 — Passed the House · Congress.gov: “On passage Passed by the Yeas and Nays: 292 - 132, 1 Present (Roll no. 71). (text: CR H1099)”
• Mar 26, 2025 — Passed both chambers · Congress.gov: “Passed Senate without amendment by Yea-Nay Vote. 70 - 28. Record Vote Number: 151”
• Apr 1, 2025 — Sent to president · Congress.gov: “Presented to President”
• Apr 10, 2025 — Signed into law · Congress.gov: “Became Public Law No: 119-5”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 3 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,140,000 in lobbying spend. A filing names 17 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

Mike Carey, the sponsor, reported $1,809,017 in PAC receipts in the 2026 cycle.

• American Federation of State County and Municipal Employees — $690,000 on 1 filing
• Digital Currency Group — $410,000 on 1 filing
• Ozone Networks, Inc. D/b/a Opensea — $40,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.