Mr. Speaker, I was unable to vote on Roll Call No. 71, H.J. Res 25, during the Legislative Day of March 11, 2025. Had I been present for the Roll Call Vote on the Passage of H.J. Res. 25, I would have cast the following vote: Roll Call No. 71: YEA.
H.J.Res. 25: 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".
Introduced Jan 21, 20259 cosponsors
Sponsor
Mike Carey
Republican · OH-15
Bill Progress
IntroducedJan 21
Committee
Pass HouseMar 11
Pass SenateMar 26
SignedApr 10
LawApr 10
Latest Action · Apr 10, 2025
1/4
Became Public Law No: 119-5.
Crypto's first 2025 win cost the IRS $4.5 billion
4 min readLast updated April 16, 2026
Why it matters
This is now Public Law 119-5. Congress killed an IRS rule that would have forced decentralized crypto platforms to report your trades. CBO scored the kill at $4.5 billion in lost federal revenue over 2025–2035 — money that would have come from unreported digital asset gains. It took 79 days from introduction to the President's signature.
The resolution is one sentence long. Congress disapproves the IRS rule published at 89 Fed. Reg. 106928, and the rule has no force or effect. That's the entire operative text. President Trump signed it on April 10, 2025 — the fifth public law of the 119th Congress.
What it killed matters more than what it says. The IRS spent years writing a rule to close a reporting gap in decentralized finance. Centralized exchanges like Coinbase and Kraken already file tax forms under a separate 2023 rule. The December 2024 rule was aimed at the other kind of broker — front-end operators, DeFi protocols, any platform that 'effectuates' a digital asset sale without ever holding the customer's coins. Treasury estimated that category covered millions of transactions the IRS currently sees nothing about.
Congress used the Congressional Review Act to kill it. That matters for two reasons. First, the CRA permanently bars Treasury from issuing any 'substantially similar' rule unless Congress passes a new law authorizing one. The reporting gap is now locked open. Second, the vote was bipartisan — 70-28 in the Senate, 292-132 in the House. The crypto lobby walked in with a Republican-led resolution and walked out with durable, cross-party cover.
Visual Summary
H.J.Res. 25 at a Glance
<div style="max-width:100%;">
<img src="https://legisletter.org/images/bill-infographics/hjres25-infographic.webp" alt="HJRES25 Visual Summary - 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"." style="max-width:100%;height:auto;display:block;" />
<p style="margin:8px 0 0;font-size:14px;color:#555;text-align:center;">
<a href="https://legisletter.org/bill/hjres25-disapproval-chapter-title-code-rule-submitted" target="_blank" rel="noopener noreferrer" style="color:inherit;text-decoration:underline;">HJRES25 Visual Summary – 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".</a>
<span> via </span>
<a href="https://legisletter.org" target="_blank" rel="noopener noreferrer" style="color:inherit;text-decoration:none;font-weight:500;">legisletter.org</a>
</p>
</div>What does H.J.Res. 25 do?
1
DeFi platforms will not file 1099-DAs
The rule would have required decentralized brokers to report gross proceeds from customer sales on Form 1099-DA starting in the 2027 filing year. That requirement is now void. Platforms like Uniswap that never touch the customer's funds have no federal reporting obligation under this rule.
2
Treasury is permanently blocked from trying again
Because this was a Congressional Review Act disapproval, the IRS cannot issue a 'substantially similar' rule without new authorizing legislation from Congress. Any future DeFi reporting framework requires a full act of Congress, not an agency rulemaking.
3
The $4.5 billion revenue estimate reflects unreported gains
CBO and the Joint Committee on Taxation jointly scored the resolution at a $4.5 billion federal revenue loss over 2025–2035. That number assumes third-party reporting drives higher voluntary compliance — without it, the IRS expects more gains to go unreported.
4
Individual crypto tax obligations did not change
Taxpayers still owe capital gains on crypto sales. What changed is the reporting infrastructure behind them. The IRS loses a planned data feed for DeFi transactions and falls back on existing tools — self-reporting, John Doe summonses, blockchain analytics contractors.
5
Centralized exchange reporting is untouched
The 2023 IRS rule that requires custodial brokers like Coinbase and Kraken to file 1099-DAs for their customers is still in effect. H.J. Res. 25 only erases the December 2024 rule covering decentralized and front-end broker activity.
Who benefits from H.J.Res. 25?
DeFi protocol operators
Front-end developers, automated market makers, and decentralized exchange operators avoid building a 1099-DA reporting system that many argued was technically impossible for permissionless smart contracts. No reporting obligation, no data collection, no compliance department.
Active DeFi traders
Users of decentralized platforms will not receive 1099-DAs listing their gross proceeds. The paper trail linking wallet addresses to IRS-reported dollar amounts via DeFi brokers does not get created.
The crypto lobby coalition
A16z, Coin Center, the Blockchain Association, and the DeFi Education Fund made this their first target of the 119th Congress. They won bipartisan — 76 Democrats voted yes in the House, 14 in the Senate. That vote map gets referenced in every future crypto fight.
Centralized exchanges, indirectly
Coinbase and Kraken still have to file 1099-DAs for their own customers. But their DeFi competitors will not — a regulatory asymmetry that advantaged the incumbents until December 2024 and now continues indefinitely.
Who is affected by H.J.Res. 25?
The IRS's crypto enforcement team
Treasury loses a planned data stream covering an entire category of digital asset activity. The agency's 2024-2026 crypto enforcement strategy assumed 1099-DA data was coming. It isn't. The fallback is more blockchain analytics contracts, more John Doe summonses, and more audits triggered by bank-deposit mismatches.
Honest crypto taxpayers
Without third-party reporting, DeFi users carry the full burden of calculating cost basis and gross proceeds themselves. Mistakes now mean more audit exposure — there is no broker-furnished form to cross-check.
Tax preparation software and CPAs
Products like TurboTax, CoinTracker, and Koinly built integrations anticipating Form 1099-DA ingestion from DeFi brokers. That revenue line disappears. CPAs continue reconstructing client trade histories from wallet exports the old way.
The broader federal budget
CBO's $4.5 billion revenue loss is not hypothetical — it is baked into current-law baselines. Future tax legislation that needs to offset costs now has $4.5 billion less room before hitting pay-as-you-go constraints.
Cost & Funding
Authorization
No appropriations; $4.5 billion in forgone federal revenue 2025–2035 (CBO/JCT)
- CBO and Joint Committee on Taxation joint estimate: –$4.5 billion federal revenue over 2025–2035
- Roughly $450 million per year in expected compliance revenue, now not collected
- The estimate assumes third-party reporting materially increases voluntary compliance on capital gains
- No direct spending — the resolution adds no costs, only eliminates a data feed Treasury had built into its enforcement plan
- Because this is a CRA disapproval, Treasury cannot recoup the loss through a substantially similar rule
On the Record
What Congress Said
H.J.Res. 25 was signed into law on Apr 28, 2025.
Mr. Speaker, I rise today in strong support of H.J. Res. 25, which overturns the Biden administration's misguided attempt to impose unworkable reporting requirements on the digital asset industry. In November, the American people sent a very clear message. They were tired of the far-left policies of the Biden administration. They gave President Trump a mandate to turn our country around. Despite this clear mandate and warnings from committees, the Biden administration pressed forward with partisan midnight rulemaking.
Mr. Speaker, I rise today in support of a Congressional Review Act resolution repealing the last-minute, unfair, and unworkable Biden IRS rule that places a bureaucratic burden on the Americans who own cryptocurrency and the platforms that allow them to own it. Congress gave the IRS clear instructions in the 2021 infrastructure law regarding digital asset reporting. The IRS was given an inch and took a mile, writing a rule that is overly broad and downright sloppy in the process.
H.J.Res. 25 also appeared in 3 more House floor references, 3 more Senate floor references, and 6 routine cosponsor filings.
HJRES25 Legislative Journey
Signed into Law
Apr 10, 2025
Became Public Law No: 119-5.
+3 more actions this day
Action Taken
Apr 1, 2025
Presented to President.
Action Taken
Mar 27, 2025
Message on Senate action sent to the House.
Passed 70-28
Mar 26, 2025
Passed Senate without amendment by Yea-Nay Vote. 70 - 28. Record Vote Number: 151.
+3 more actions this day
Sent to Senate
Mar 12, 2025
Received in the Senate. Read twice. Placed on Senate Legislative Calendar under General Orders. Calendar No. 27.
House: Passed 292-132
Mar 11, 2025
On passage Passed by the Yeas and Nays: 292 - 132, 1 Present (Roll no. 71). (text: CR H1099)
+9 more actions this day
House: Committee Action
Feb 28, 2025
Reported by the Committee on Ways and Means. H. Rept. 119-7.
House: Vote: 26-16
Feb 26, 2025
Ordered to be Reported by the Yeas and Nays: 26 - 16.
House: Committee Action
Jan 21, 2025
Referred to the House Committee on Ways and Means.
About the Sponsor
Mike Carey
Republican, Ohio's 15th congressional district · 5 years in Congress
Committees: Joint Committee of Congress on the Library, House Administration, the Budget
View full profile →
Cosponsors at time of passage (9)
This bill has 9 cosponsors: 1 Democrat, 8 Republicans, reflecting bipartisan support. Cosponsors represent 9 states: Colorado, Iowa, Michigan, and 6 more.
1Democrat8Republicans·9 statesBipartisan
Committee Sponsors
Ways and Means Committee
19D26R
|2 signed43 others2 of 45 committee members cosponsored at the time
H.J.Res. 25 Quick Facts
Cosponsors
9
- Committee
- Ways and Means
- Chamber
- House
- Policy
- Taxation
- Introduced
- Jan 21, 2025
Became Public Law No: 119-5.
Apr 10, 2025
Official Sources
H.J. Res. 25 on Congress.gov
Official bill page with full text, actions, cosponsors, and roll call votes for the joint resolution that became Public Law 119-5.
CBO Cost Estimate — $4.5 Billion Revenue Impact
CBO and JCT estimate the resolution reduces federal revenues by $4.5 billion over 2025-2035 due to reduced third-party crypto transaction reporting.
Original IRS DeFi Broker Rule (89 FR 106928)
The December 30, 2024 Federal Register rule that H.J. Res. 25 disapproves, requiring DeFi brokers to report gross proceeds on Form 1099-DA.
IRS Digital Asset Tax Reporting Requirements
IRS overview of digital asset tax obligations, including how crypto is classified as property and current reporting requirements.
IRS Form 1099-DA for Digital Asset Broker Transactions
The IRS form that brokers would have used to report digital asset gross proceeds under the now-overturned rule.
Congressional Review Act (5 U.S.C. Chapter 8)
The statutory mechanism Congress used to disapprove the IRS rule — allows expedited review and nullification of recent federal regulations.
Public Law 119-5 on GovInfo
Official publication of the enacted law, signed by the President on April 10, 2025, formally nullifying the IRS DeFi broker reporting rule.
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H.J.Res. 25 Common Questions
Is H.J. Res. 25 now law?
Yes. President Trump signed H.J. Res. 25 on April 10, 2025, and it became Public Law 119-5. The IRS rule it targets — the December 30, 2024 rule on gross proceeds reporting by DeFi brokers — has no force or effect.
Do I still have to report crypto on my taxes after H.J. Res. 25?
Yes. H.J. Res. 25 only killed the IRS reporting rule for decentralized brokers — it did not change individual tax obligations. Capital gains on digital asset sales are still taxable, and taxpayers still owe tax on DeFi trades even if no 1099-DA is ever issued.
Does H.J. Res. 25 affect Coinbase and Kraken?
No. Coinbase, Kraken, and other centralized custodial brokers file 1099-DAs under a separate 2023 IRS rule that is still in effect. H.J. Res. 25 only eliminates the December 30, 2024 rule covering decentralized brokers — the platforms that never take custody of customer funds.
How much revenue does H.J. Res. 25 cost the federal government?
CBO and the Joint Committee on Taxation jointly estimate H.J. Res. 25 reduces federal revenue by $4.5 billion over 2025-2035. The loss comes from expected capital gains that now will not be reported by third-party DeFi brokers.
What is Form 1099-DA and is it still required?
Form 1099-DA is the IRS form brokers use to report digital asset sales. It is still required for centralized custodial brokers like Coinbase. Under H.J. Res. 25, decentralized brokers — DeFi front ends and smart contract-based exchanges — are no longer required to issue the form.
Which IRS rule did H.J. Res. 25 overturn?
H.J. Res. 25 overturns the IRS rule titled 'Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales,' published at 89 Fed. Reg. 106928 on December 30, 2024. The rule would have required decentralized platforms to report customer gross proceeds starting in the 2027 filing year.
Can the IRS issue a similar DeFi reporting rule in the future?
Not easily. Because H.J. Res. 25 used the Congressional Review Act, the IRS is permanently barred from issuing any 'substantially similar' rule without new authorizing legislation from Congress. A future DeFi reporting framework would require an act of Congress, not an agency rulemaking.
How did the House and Senate vote on H.J. Res. 25?
The House passed it 292-132 on March 11, 2025. The Senate passed it 70-28 on March 26, 2025. Both were bipartisan — 76 House Democrats and 14 Senate Democrats voted yes alongside Republicans.
Based on H.J.Res. 25 bill text
H.J.Res. 25 Bill Text
“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”.”
Source: U.S. Government Publishing Office
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