Congress strikes back at IRS cryptocurrency rules, a big win for digital assets

Congress just scored a big win for crypto innovation, overturning controversial IRS crypto rules that critics say stifle the growth of digital assets and push development overseas.

U.S. House and Senate overturn IRS crypto rules, reduce compliance burdens.

The U.S. House of Representatives approved H.J. Res. 25 on March 11, which seeks to overturn the previous administration’s “broker rule,” which critics say imposes excessive burdens on digital asset transactions and stifles innovation. This action follows the Senate’s passage of S.J. Res. 28 on March 5.

The measure seeks to repeal an Internal Revenue Service (IRS) rule that requires certain brokers, including decentralized finance (DeFi) entities, to report transaction details. Supporters of the resolution argue that the rule adds unnecessary compliance costs and threatens to push cryptocurrency development overseas. House Financial Services Committee Chair French Hill (R-AR) praised the decision, saying:

The previous administration’s controversial “broker rule” is a clear example of government overreach that threatens to push U.S. digital asset development abroad.

The congressman added, “I am proud to protect America’s leadership in the digital asset ecosystem and vote to overturn this harmful, anti-innovation midnight rulemaking.” Hill also stressed the need for bipartisanship to improve cryptocurrency regulations: “I look forward to working in a bipartisan manner to ensure that the digital asset reporting requirements in the Infrastructure Investment and Jobs Act match the operation of the technology. We must bring legal and regulatory certainty to ensure that these technologies and entrepreneurs can thrive in the United States.”

House Republican Conference Chair Lisa McClain (R-MI) commented:

We voted to roll back yet another burdensome regulation that created an unnecessary bureaucracy around the sale of our digital assets. House Republicans are reducing restrictions, spurring innovation, and making America more competitive.

President Donald Trump must sign the resolution for it to become law. The White House has expressed support for the measure, which is consistent with its broader strategy to ease regulatory restrictions and promote innovation in the digital asset space.