Ways and Means advances resolution to overturn IRS ‘DeFi broker’ rule, JCT estimates $3.9 billion revenue impact

The House Ways and Means Committee voted to advance a Congressional Review Act resolution (H.J. Res. 25) that would rescind the Internal Revenue Service’s December 2024 rule applying broker reporting requirements to decentralized finance transactions.

Tom Barthold of the Joint Committee on Taxation provided the technical description and the revenue estimate: "The joint resolution before you provides that the December regulations applicable to the noncustodial part of the market would cease to have effect and would be treated as never having taken effect." He said adoption of the resolution would reduce baseline federal receipts by approximately $3,900,000,000 over fiscal years 2025 through 2034, according to JCX staff estimates.

The measure was reported favorably to the House on a recorded vote, 26 in favor and 16 opposed. Committee members debating the resolution sharply disagreed on the appropriate balance between privacy/innovation and tax enforcement and illicit‑finance risks.

Supporters of the CRA argued the IRS rule exceeded congressional intent and would force software providers and self‑custodial wallet operators into burdensome reporting roles they cannot practically perform. Representative Bryan Steil (floor discussion sponsor not in transcript as named) and other backers argued the rule would invade user privacy, disrupt U.S. competitiveness in digital asset technology, and impose reporting obligations that are technically infeasible for decentralized protocols.

Opponents said repealing the rule would open a large compliance gap and facilitate tax evasion and illicit finance. Ranking Member Neal said the measure "would repeal sensible and important treasury regulations ensuring that taxpayers meet their tax filing obligations and do not skirt the law by selling cryptocurrency without reporting the gains." Several members warned about narcotics trafficking, terrorism finance and money‑laundering risks associated with noncustodial, unreported transactions.

Representative Josh Gottheimer (not named in the excerpt) and other opponents emphasized tax revenue consequences; JCX estimated the resolution would lower reported tax receipts by roughly $3.9 billion over the 10‑year window cited to the committee.

Committee process and vote: After the Joint Committee on Taxation technical briefing and member debate, chairman’s staff placed the resolution on the committee calendar. The motion to report was offered by the committee majority and the clerk recorded 26 yes and 16 no votes. The committee granted members two additional days to file supplemental views.

What to watch next: If the House enacts the resolution and the Senate and President do not block it, the rescission would invalidate the IRS December 2024 rule for the noncustodial DeFi sector; JCX estimated resulting federal revenue reductions and committee members flagged law‑enforcement and counter‑terrorism concerns in floor‑level debate.

Budgetary note: The Joint Committee on Taxation estimated the resolution would reduce baseline receipts by about $3.9 billion for fiscal years 2025–2034; that estimate was cited repeatedly during debate.