North Columbus News

Representative Mike Carey has introduced a resolution under the Congressional Review Act (CRA) aimed at nullifying the Internal Revenue Service’s (IRS) Digital Assets Sale and Exchanges Rule, commonly known as the IRS Broker Rule. This move in the House of Representatives is accompanied by similar legislation introduced in the Senate by Senator Ted Cruz.

Rep. Carey criticized the rule, stating, "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." He emphasized collaboration with Sen. Cruz to prevent unnecessary complications in tax filing.

The controversial rule would require over 8 billion new digital asset returns on Form 1099-DA. According to Sen. Cruz, "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." He urged Congress to act quickly on this resolution.

Last month, Rep. Carey expressed his opposition to expanding the broker rule through a letter addressed to former Secretary of the Treasury Janet Yellen and IRS Commissioner Danny Werfel.

Under CRA guidelines, Congress can nullify a final rule issued by a federal agency if disapproved. The issuing agency is then prohibited from reissuing a similar rule unless authorized by Congress through new legislation.