DeFi Broker Digital Asset Gross Proceeds Reporting – CRA Disapproval

Current understanding

The IRS finalized a rule requiring persons that regularly provide services effectuating decentralized finance (DeFi) digital asset sales to report gross proceeds and related customer information to the IRS as ‘brokers.’ A Congressional Review Act joint resolution has been introduced to nullify that rule, which would eliminate DeFi front-end operators’ broker-style reporting obligations for digital asset dispositions. Status: joint resolution of disapproval introduced under 5 U.S.C. ch. 8; if enacted, the underlying IRS rule would be void and the agency barred from issuing a substantially similar rule without new statutory authorization.

Evidence log

• 2025-04-10 — 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”.: 2025 — CRA joint resolution enacted as Public Law 119-5, formally nullifying the IRS DeFi broker gross-proceeds reporting final rule; DeFi front-ends and non-custodial service providers effectuating digital-asset sales are relieved of the rule’s broker reporting obligations, and under CRA the IRS is barred from reissuing a substantially similar rule absent new congressional authorization. (novelty: 3)

Open questions

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