S.J.Res. 3: 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".

S.J. Res. 3 is a Congressional Review Act resolution — a one-sentence tool Congress uses to cancel a recently issued federal agency rule with simple majorities and a short debate window.

The target was an IRS rule finalized on December 30, 2024, often called the "DeFi broker rule." It would have treated businesses and software that help complete decentralized digital asset sales as "brokers," requiring them to report the gross proceeds of those sales to the IRS and to taxpayers — similar to the forms a brokerage sends after you sell a stock.

The Senate passed the resolution 70-27 on March 4, 2025, drawing votes from both parties. Because a Congressional Review Act resolution has to clear both chambers and get a presidential signature, an identical House measure, H.J. Res. 25, carried the repeal across the finish line and became Public Law 119-5 on April 10, 2025. The IRS rule now has no force or effect, and the agency generally cannot reissue a substantially similar rule unless Congress authorizes it.

Sponsors argued the rule reached too far — sweeping in decentralized protocols that don't custody assets or know their users, and creating paperwork that's impossible for that kind of software to produce. Critics of the repeal argued that pulling back the reporting requirement makes it harder for the IRS to match crypto income to tax filings.

One thing the repeal does not change: if you owe taxes on crypto gains, you still owe them. The rule governed third-party reporting, not whether the income is taxable.