[House Report 119-7]
[From the U.S. Government Publishing Office]


119th Congress }                                          { REPORT 
                        HOUSE OF REPRESENTATIVEShr
 1st Session   }                                          { 119-7

======================================================================
 
  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''

                                _______
                                

 February 28, 2025.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Smith of Missouri, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                      [To accompany H.J. Res. 25]

    The Committee on Ways and Means, to whom was referred the 
joint resolution (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'', having considered 
the same, reports favorably thereon without amendment and 
recommends that the joint resolution do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................2
          A. Purpose and Summary.................................     2
          B. Background and Need for Legislation.................     2
          C. Legislative History.................................     3
          D. Designated Hearing..................................     3
 II. EXPLANATION OF THE RESOLUTION....................................3
III. VOTE OF THE COMMITTEE............................................6
 IV. BUDGET EFFECTS OF THE RESOLUTION.................................7
          A. Committee Estimate of Budgetary Effects.............     7
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     7
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     7
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......8
          A. Committee Oversight Findings and Recommendations....     8
          B. Statement of General Performance Goals and 
              Objectives.........................................     8
          C. Applicability of House Rule XXI, Clause 5(b)........     8
          D. Information Relating to Unfunded Mandates...........     8
          E. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     8
          F. Duplication of Federal Programs.....................     8
          G. Tax Complexity Analysis.............................     9
 VI. CHANGES IN EXISTING LAW MADE BY THE RESOLUTION, AS REPORTED......9
VII. DISSENTING VIEWS................................................10

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    H.J. Res. 25, a joint resolution disapproving of the rule 
promulgated by the Department of the Treasury relating to 
``Gross Proceeds Reporting by Brokers That Regularly Provide 
Services Effectuating Digital Asset Sales,'' was ordered 
reported favorably by the Committee on Ways and Means on 
February 26, 2025.
    Under the resolution, the Treasury regulations published 
and finalized on December 30, 2024,\1\ are disapproved under 
the Congressional Review Act (the ``CRA''), and will be treated 
as if they had never taken effect.
---------------------------------------------------------------------------
    \1\T.D. 10021, 89 Fed. Reg. 106928, December 30, 2024.
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                 B. Background and Need for Legislation

    On December 27, 2024, the U.S. Department of the Treasury 
(``Treasury'') released final regulations titled, ``Gross 
Proceeds Reporting by Brokers that Regularly Provide Services 
Effectuating Digital Asset Sales.'' These final regulations 
created reporting requirements for trading front-end service 
providers that work directly with users on digital asset 
transactions, sometimes referred to as ``DeFi brokers.'' The 
final regulations were finalized as part of the Infrastructure 
Investment and Jobs Act, Public Law 117-58. Under these new 
regulations, users engaging in digital asset trades on DeFi 
platforms, including newly defined ``DeFi brokers'', would be 
required to file a Form 1099-DA and disclose information 
including taxpayer information for those involved in digital 
asset transactions as well as the financial details of those 
transactions.
    Upon publication in the Federal Register, the regulations 
relating to ``Gross Proceeds Reporting by Brokers That 
Regularly Provide Services Effectuating Digital Asset Sales,'' 
was challenged in court, with opponents contending that the 
rule exceeded places unlawful compliance burdens on software 
developers and American entrepreneurs, stifles innovation, and 
threatens the viability of the digital asset industry. The rule 
would also create a large increase in taxpayer information 
reported to the Internal Revenue Service (``IRS'') as well, 
placing an overwhelming incumbrance on the IRS to analyze and 
ultimately process these claims. Additionally, due to the 
unique structure of ``DeFi'' exchanges and the nature of these 
platforms--including the fact that DeFi brokers do not collect 
any of the information that would be required to be reported to 
the IRS under this final rule--the finalized rule would 
especially harm DeFi brokers who may be unable to meet the 
reporting requirements.

                         C. Legislative History


Background

    House Joint Resolution 25 was introduced on January 21, 
2025, and was referred to the Committee on Ways and Means.

Committee Hearings

    On February 26, 2025, the Committee held a markup of H.J. 
Res. 25.

Committee Action

    The Committee on Ways and Means marked up H.J. Res. 25, a 
joint resolution to disapprove and render ineffective 
regulations relating to ``Gross Proceeds Reporting by Brokers 
That Regularly Provide Services Effectuating Digital Asset 
Sales'' on February 26, 2025, and ordered the resolution 
favorably reported (with a quorum being present).

                         D. Designated Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop and consider H.J. Res. 25:
    On January 22, 2025, the Committee held a hearing entitled, 
``Member Day Hearing on Matters within the Committees Tax 
Jurisdiction''.

                   II. EXPLANATION OF THE RESOLUTION


  A. Disapproval of the Rule Relating to Gross Proceeds Reporting by 
  Brokers That Regularly Provide Services Effectuating Digital Asset 
Sales (Secs. 6045 and 6045A of the Internal Revenue Code and Secs. 801 
           Through 808 of Title 5 of the United States Code)


                              PRESENT LAW

Gross proceeds reporting by persons regularly providing services 
        related to digital asset sales

    In 2021, Congress clarified that broker information 
reporting includes reporting with respect to transactions 
involving digital assets by amending the provisions of the 
Internal Revenue Code of 1986 (``the Code'')\2\ that generally 
require brokers to report sales, and in the case of certain 
broker-to-broker transactions, basis.\3\ A broker is defined to 
include ``any person who (for consideration) is responsible for 
regularly providing any service effectuating transfers of 
digital assets on behalf of another person.''\4\ Except as 
provided by the Secretary of the Treasury (the ``Secretary''), 
digital assets are defined as ``any digital representation of 
value which is recorded on a cryptographically secured 
distributed ledger or any similar technology as specified by 
the Secretary.''\5\
---------------------------------------------------------------------------
    \2\All section references in the document are to the Code, unless 
otherwise stated.
    \3\Pub. L. No. 117-58, sec. 80603 (Information reporting for 
brokers and digital assets); secs. 6045(c)(1)(D) and 6045A(d).
    \4\Sec. 6045(c)(1)(D).
    \5\Sec. 6045(g)(3)(D).
---------------------------------------------------------------------------
    Regulatory guidance to implement the reporting requirement 
was proposed in 2023,\6\ and finalized in a Treasury Decision 
published in July 2024 titled ``Gross Proceeds and Basis 
Reporting by Brokers and Determination of Amount Realized and 
Basis for Digital Asset Transactions'' (hereinafter, ``July 
2024 Regulations'').\7\ The July 2024 Regulations address the 
general rules for gross proceeds and basis reporting for 
persons within scope of the regulations. The guidance also 
provides the rules for determining the amount realized from the 
sale, exchange, or disposition of digital assets by persons 
subject to the broker reporting rules, as well as the 
determination of basis in assets in such transactions.
---------------------------------------------------------------------------
    \6\88 Fed. Reg. 59576, August 29, 2023.
    \7\T.D. 10000, 89 Fed. R. 56480, July 9, 2024.
---------------------------------------------------------------------------
    In defining the class of persons within scope of the 
reporting rules, the regulations introduce the terms ``U.S. 
digital asset broker,'' ``customer,'' and ``digital asset 
middleman.'' A U.S. digital asset broker is defined as ``a 
person that effects sales of digital assets on behalf of others 
and that is . . . a U.S. payor or U.S. middleman''\8\ and is 
required to report with respect to each sale by a customer if, 
in the ordinary course of business in which ``the broker stands 
ready to effect sales to be made by others, the broker effects 
the sale or closes the short position opened by the sale.''\9\ 
A customer, with respect to a sale effected by a broker, is 
defined as the person (other than such broker) that makes the 
sale if the broker acts as (1) an agent for such person in the 
sale; (2) a principal in the sale; (3) the participant in the 
sale responsible for paying to such person or crediting to such 
person's account the gross proceeds of the sale; or (4) a 
digital asset middleman that effects the sale of a digital 
asset for such person.\10\ A digital asset middleman is defined 
as any person who provides certain facilitative services with 
respect to a sale of digital assets.\11\
---------------------------------------------------------------------------
    \8\Treas. Reg. sec. 1.6045-1(g)(4)(i)(A) (defines U.S. digital 
asset broker). The term ``U.S. middleman'' is defined in regulations 
under rules on interest reporting and intermediaries. Treas. Reg. secs. 
1.6049-5(c)(5)(i) (defining U.S. middleman).
    \9\Treas. Reg. sec. 1.6045-1(c)(2).
    \10\Treas. Reg. sec. 1.6045-1(a)(2)(i).
    \11\Former Treas. Reg. sec. 1.6045-1(a)(21).
---------------------------------------------------------------------------
    In the preamble to the July 2024 Regulations (the 
``Preamble''), Treasury distinguished between custodial and 
non-custodial industry participants. Custodial industry 
participants, such as custodial digital asset trading platforms 
and certain digital asset hosted wallet providers, generally 
act as principals or agents to effect digital asset 
transactions on behalf of their customers. In contrast, non-
custodial industry participants are described as participants 
that do not take possession of a customer's digital assets, 
such as operators of non-custodial digital asset trading 
platforms (sometimes referred to as decentralized finance or, 
colloquially, ``DeFi''). As explained in the Preamble, the 
decentralized finance industry offers services that allow for 
transactions that use automatically executing software 
(sometimes referred to as ``smart contracts'') that do not 
require taking custody of a digital asset customer's private 
access code (or ``private key'') needed to access such 
customer's digital account.
    As discussed above, the regulations defined a digital asset 
middleman as any person who provides certain facilitative 
services with respect to a sale of digital assets. The 
Secretary finalized the definition of digital asset middleman 
as applied to custodial industry participants by specifying 
certain facilitative services, such as acceptance or processing 
of digital assets as payment for property of a type which when 
sold would constitute a sale by a broker that is in the 
business of effecting sales of such property. However, Treasury 
reserved on and did not finalize the definition of digital 
asset middleman as applied to non-custodial industry 
participants, noting that such rules would be provided in a 
separate set of final regulations. The July 2024 Regulations 
are otherwise in effect and generally require gross proceeds 
reporting for sales of digital assets occurring on and after 
January 1, 2025, and basis reporting for certain sales 
occurring on and after January 1, 2026.\12\
---------------------------------------------------------------------------
    \12\Treas. Reg. sec. 1.6045-1(q).
---------------------------------------------------------------------------
    The regulations finalized in December 2024, titled ``Gross 
Proceeds Reporting by Brokers That Regularly Provide Services 
Effectuating Digital Asset Sales'' (hereinafter, the ``December 
2024 Regulations'') address only a revised definition of 
digital asset middleman to encompass certain persons who 
participate in effectuating decentralized financial 
transactions (non-custodial industry participants).\13\ In the 
definition of digital asset middleman, the December 2024 
regulations replace ``facilitative services'' with 
``effectuating services'' and provide that an ``effectuating 
service'' includes both the previously-defined ``facilitative 
services'' (as included in the July 2024 Regulations) as well 
as trading front-end services where the nature of the service 
arrangement is such that the person providing that service 
ordinarily would know or be in a position to know that the 
nature of the transaction potentially gives rise to gross 
proceeds from the sale of digital assets.\14\ Trading front-end 
services generally facilitate trading for customers who may 
otherwise need to write software code in order to communicate, 
and thus transact, with other decentralized finance 
participants.
---------------------------------------------------------------------------
    \13\T.D. 10021, 89 Fed. Reg. 106928, December 30, 2024.
    \14\Treas. Reg. sec. 1.6045-1(a)(21).
---------------------------------------------------------------------------
    The December 2024 Regulations generally apply to sales of 
digital assets occurring on or after January 1, 2027.\15\
---------------------------------------------------------------------------
    \15\Treas. Reg. sec. 1.6045-1(q) (the revised rule of Treas. Reg. 
sec. 1.6045-1(a)(21) is applicable to sales of digital assets occurring 
on or after Jan. 1, 2027).
---------------------------------------------------------------------------

The Congressional Review Act

    Under the Congressional Review Act (the ``CRA''),\16\ 
Congress may overturn certain Federal agency actions by passing 
a joint resolution of disapproval that is introduced within 60 
days of the date on which the rule is submitted to Congress for 
review.\17\ Under a CRA joint resolution of disapproval, if a 
disapproved rule has not yet gone into effect, the rule will 
not take effect;\18\ if a disapproved rule has already gone 
into effect, the rule shall be treated as though it had never 
taken effect.\19\ Rules that do not take effect or do not 
continue due to a CRA joint resolution of disapproval may not 
be reissued in substantially the same form, and new rules that 
are substantially the same as disapproved rules may not be 
issued absent a change in law.\20\
---------------------------------------------------------------------------
    \16\5 U.S.C. secs. 801-808.
    \17\5 U.S.C. secs. 801(a), 801(d), and 802. The date of submission 
is the date on which a report on the rule is submitted to Congress, 
generally not later than the date on which the rule is published in the 
Federal Register. If the session of Congress in which the report was 
submitted adjourns until the first day of the following session of the 
same or next Congress, the rule is treated as if published, in the case 
of the House, on the 15th legislative day of the new session of 
Congress.
    \18\5 U.S.C. sec. 801(b)(1).
    \19\5 U.S.C. sec. 801(f).
    \20\5 U.S.C. sec. 801(b)(2).
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee is concerned that the December 2024 
Regulations may be broad, ambiguous, overly burdensome, and 
impractical. First, the Committee believes that the regulations 
fall outside the explicit scope of the statutory language that 
extended third-party information reporting requirements to 
digital asset transactions. Second, the noncustodial nature of 
the activities presents for parties subject to the regulations 
barriers to collecting the information necessary to comply with 
the regulations.

                      EXPLANATION OF THE PROVISION

    The provision is a joint resolution disapproving of the 
rules published on December 30, 2024, by the Department of the 
Treasury relating to ``Gross Proceeds Reporting by Brokers That 
Regularly Provide Services Effectuating Digital Asset Sales.'' 
Under the CRA, the December 2024 Regulations immediately cease 
to have effect and are treated as though they had never taken 
effect. The July 2024 Regulations are not affected by the 
resolution.

                             EFFECTIVE DATE

    The joint resolution is effective on date of enactment.

                       III. VOTE OF THE COMMITTEE

    Pursuant to clause 3(b) of rule XIII of the Rules of the 
House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.J. Res. 25, disapproving of the rule 
promulgated by the Department of the Treasury relating to 
``Gross Proceeds Reporting by Brokers That Regularly Provide 
Services Effectuating Digital Asset Sales,'' on February 26, 
2025.
    The resolution, H.J. Res. 25, disapproving of the rule 
promulgated by the Department of the Treasury relating to 
``Gross Proceeds Reporting by Brokers That Regularly Provide 
Services Effectuating Digital Asset Sales,'' was ordered 
favorably reported to the House of Representatives by a 
recorded vote of 26 yeas and 16 nays, with a quorum being 
present.

----------------------------------------------------------------------------------------------------------------
           Representative              Yea     Nay    Present       Representative       Yea     Nay    Present
----------------------------------------------------------------------------------------------------------------
Mr. Smith (MO).....................      X   ......  .........  Mr. Neal.............  ......      X   .........
Mr. Buchanan.......................      X   ......  .........  Mr. Doggett..........  ......      X   .........
Mr. Smith (NE).....................      X   ......  .........  Mr. Thompson.........  ......      X   .........
Mr. Kelly..........................      X   ......  .........  Mr. Larson...........  ......      X   .........
Mr. Schweikert.....................      X   ......  .........  Mr. Davis............  ......      X   .........
Mr. LaHood.........................      X   ......  .........  Ms. Sanchez..........  ......      X   .........
Mr. Arrington......................      X   ......  .........  Ms. Sewell...........  ......  ......  .........
Mr. Estes..........................      X   ......  .........  Ms. DelBene..........  ......      X   .........
Mr. Smucker........................      X   ......  .........  Ms. Chu..............  ......      X   .........
Mr. Hern...........................      X   ......  .........  Ms. Moore (WI).......  ......      X   .........
Mrs. Miller (WV)...................      X   ......  .........  Mr. Boyle............  ......  ......  .........
Dr. Murphy.........................      X   ......  .........  Mr. Beyer............  ......      X   .........
Mr. Kustoff........................      X   ......  .........  Mr. Evans............  ......      X   .........
Mr. Fitzpatrick....................      X   ......  .........  Mr. Schneider........  ......      X   .........
Mr. Steube.........................      X   ......  .........  Mr. Panetta..........  ......      X   .........
Ms. Tenney.........................      X   ......  .........  Mr. Gomez............  ......      X   .........
Mrs. Fischbach.....................      X   ......  .........  Mr. Horsford.........  ......  ......  .........
Mr. Moore (UT).....................      X   ......  .........  Ms. Plaskett.........  ......      X   .........
Ms. Van Duyne......................      X   ......  .........  Mr. Suozzi...........  ......      X   .........
Mr. Feenstra.......................      X   ......  .........
Ms. Malliotakis....................      X   ......  .........
Mr. Carey..........................      X   ......  .........
Mr. Yakym..........................      X   ......  .........
Mr. Miller (OH)....................      X   ......  .........
Mr. Bean...........................      X   ......  .........
Mr. Moran..........................      X   ......  .........
----------------------------------------------------------------------------------------------------------------

                  IV. BUDGET EFFECTS OF THE RESOLUTION


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the resolution, H.J. 
Res. 25, as reported. The estimate prepared by the Joint 
Committee on Taxation (``JCT'') is included below.
    The staff of the Joint Committee on Taxation estimates the 
resolution to have the following effect on Federal fiscal year 
budget receipts for the period 2025 through 2034:

                                                                      FISCAL YEARS
                                                                  [Billions of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2025-    2025-
                                                2025     2026     2027     2028     2029     2030     2031     2032     2033     2034     2029     2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
Repeal of Treasury December 2024 regulations    -0.1     -0.2     -0.3     -0.3     -0.4     -0.5     -0.5     -0.5     -0.5     -0.5     -1.3     -3.9
--------------------------------------------------------------------------------------------------------------------------------------------------------

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
resolution involves no new or increased budget authority.

      C. Cost Estimate Prepared by the Congressional Budget Office

    The Congressional Budget Act of 1974, as amended stipulates 
that revenue estimates provided by the staff of the Joint 
Committee on Taxation (``JCT'') will be the official estimates 
for all tax legislation considered by Congress. As such CBO 
incorporates these estimates into its cos estimates of the 
effects of the legislation. The estimates for the revenue 
provisions of H.J. Res. 25 were provided by JCT (See Section 
IV, Subsection ).

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives, the Committee made findings and 
recommendations that are reflected in this report.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
resolution does not authorize funding, so no statement of 
general performance goals and objectives is required.

            C. Applicability of House Rule XXI, Clause 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the resolution, and states that the 
resolution does not provide such a Federal income tax rate 
increase.

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the resolution does not 
contain Federal mandates on the private sector. The Committee 
has determined that the resolution does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

  E. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the resolution, and states that the 
provisions of the resolution do not contain any congressional 
earmarks, limited tax benefits, or limited tariff benefits 
within the meaning of the rule.

                   F. Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the resolution establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                       G. Tax Complexity Analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
staff of the Joint Committee on Taxation (in consultation with 
the Internal Revenue Service and the Treasury Department) to 
provide a tax complexity analysis. The complexity analysis is 
required for all legislation reported by the Senate Committee 
on Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
and has widespread applicability to individuals or small 
businesses.
    The staff of the Joint Committee on Taxation has determined 
that there are no provisions that are of widespread 
applicability to individuals or small businesses.

    VI. CHANGES IN EXISTING LAW MADE BY THE RESOLUTION, AS REPORTED

    As reported by the Committee, H.J. Res. 25 makes no changes 
to existing law.

                         VII. DISSENTING VIEWS

    Committee Democrats find it ironic that Republicans, who 
claim to be stewards of fiscal responsibility, are once again 
contributing to our ever-growing deficit by proposing an 
additional $4 billion tax giveaway.
    Gains on the sales and exchanges of cryptocurrency are 
subject to tax, just like other assets. The Congressional 
Review Act resolution in question does not address a new tax, 
nor does it change taxpayers' tax filing obligations. Rather, 
it repeals a Biden Administration regulation clarifying that 
cryptocurrency transactions conducted on a decentralized 
exchange are subject to reporting rules, where the exchange is 
responsible for providing reports to both the taxpayer and the 
IRS.
    The fact that this resolution would cost nearly $4 billion 
is a testament to the very need for these regulations. Too many 
taxable gains from the sale of cryptocurrency currently go 
unreported. When taxpayers with gains shirk their tax 
obligations, that leaves honest taxpayers--and their children 
and grandchildren--holding the bag.
    To make matters worse, the CRA in question does not repeal 
the entirety of the broker reporting regulations, rather, only 
those regulations that deal with rules that respect 
decentralized exchanges. Not only would this let the more 
sophisticated cryptocurrency investors who use decentralized 
exchanges off the hook for tax reporting, it would likely 
encourage those who would otherwise transact on centralized 
exchanges (generally more friendly to retail investors) to move 
their transactions to decentralized exchanges, knowing that 
evading tax liability was easier when they do so. This will 
only serve to bolster the operations of those decentralized 
exchanges, which are known to be the source of transactions 
that facilitate the sale of fentanyl, terrorism financing, and 
a host of other nefarious purposes.
    For these reasons, Committee Democrats dissent.

                                           Richard E. Neal,
                                                    Ranking Member.

                            DISSENTING VIEWS

    The bill before us today 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. It's that 
simple.
    By repealing this regulation, Republicans are allowing 
taxpayers to raid the fisc of an additional $4 billion. And 
make no mistake about it, this bill is unpaid for--a pattern we 
are seeing from my colleagues across the aisle, notwithstanding 
their fidelity to so-called fiscal responsibility.
    I guess it shouldn't surprise us that Republicans are here 
today, weakening the tools that the IRS has to enforce the tax 
laws. They are the party that has consistently underfunded the 
IRS. They are the party that actively seeks to repeal the 
funding boost that Democrats gave the IRS. And they are the 
party that has stood idly by, while Elon Musk and his cronies 
have fired 6,700 IRS employees during tax season.
    This is a bad bill, in service of bad tax policy, and I 
will be voting no.
                                           Richard E. Neal,
                                                    Ranking Member.

                                  [all]