North Columbus News

On Wednesday, legislation introduced by U.S. Representative Mike Carey to overturn the Internal Revenue Service (IRS) Digital Assets Sale and Exchanges 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 stated. He urged his colleagues to support the effort to overturn this rule so that the U.S. can remain a leader in the crypto industry.

Rep. Jason Smith, Chairman of the House Ways and Means Committee, supported Carey's resolution. "Last year, the IRS unilaterally reclassified certain businesses as 'brokers,' putting taxpayer privacy at risk and bombarding millions of Americans with extra paperwork," Smith said. He thanked Carey for introducing a resolution aimed at rolling back what he described as an overreaching rule that burdens taxpayers and businesses.

The IRS Broker Rule requires self-custodial digital asset wallet providers and other developers of noncustodial software to submit information reports to the IRS. This rule was finalized at the end of 2024 and is considered by some as exceeding the scope outlined in the Infrastructure Investment and Jobs Act’s instructions regarding digital asset exchanges.

This Congressional Review Act of Disapproval would allow Congress to rescind the rule while aligning with Congressional intent as per the IIJA. Following its advancement from committee, this legislation will now be considered by the full U.S. House of Representatives.

Support for this legislation comes from various groups including: Blockchain Association, Coin Center, Crypto Council for Innovation, 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.