Republicans Introduce Resolutions to Overturn IRS Crypto Broker Rule

Congressional Republicans are attempting to reverse new IRS guidelines mandating “custodial brokers” to report crypto transactions. Key developments include:

Rep. Mike Carey and Sen. Ted Cruz introduced resolutions to roll back the IRS broker rule.
The legislation follows a lawsuit from crypto lobbying firms, arguing the rule exceeds statutory authority and violates the Administrative Procedure Act.
Starting in 2025, custodial brokers must report gross proceeds; by 2026, they will report cost basis for certain transactions.
The final version of the 1099-DA form removed a section requiring brokers to identify their business type, impacting DeFi actors.
Opponents claim the rule imposes excessive reporting obligations on intermediaries in the crypto sector.
The proposed resolutions have co-sponsors but lack a scheduled markup or vote.