A joint resolution 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".

# Summary of SJRES 3: IRS Digital Asset Reporting Rule Disapproval **What the Bill Does** This joint resolution would cancel an IRS rule issued in December 2024 that requires certain brokers and financial service providers to report information about digital asset (cryptocurrency) sales to the IRS. If passed, the rule would be nullified and could not be reissued in substantially the same form without new congressional approval. This is a formal congressional disapproval process that allows Congress to overturn regulations they believe are problematic. **Who It Affects and Key Details** The rule primarily affects brokers, exchanges, and decentralized finance (DeFi) platforms that facilitate cryptocurrency transactions. It would have required these entities to report gross proceeds from digital asset sales to the IRS, similar to how traditional brokers report stock sales.

Supporters of the bill argue the rule is overly burdensome or poorly designed; supporters of the rule argue it's necessary for tax compliance and enforcement. The measure was sponsored by Senator Ted Cruz (R-TX). **Current Status** The bill has passed the Senate and would need House approval to become law. President Biden has indicated he would likely veto the measure if it reaches his desk, meaning supporters would need a two-thirds majority in both chambers to override a veto and make it law.