U.S. Government Backs Bill To Overturn IRS Crypto Reporting Rule

According to PANews, the U.S. government has expressed support for S.J. Res. 3, a bill introduced by Senator Ted Cruz and others, aimed at overturning an IRS rule concerning the reporting of total proceeds from digital asset sales by brokers. This rule, initially proposed by the Biden administration in late 2024, expanded the definition of 'broker' to include software related to DeFi protocols and required certain DeFi users to report total crypto transaction proceeds and taxpayer information. The White House argues that this regulation imposes undue compliance burdens on U.S. DeFi businesses, stifles innovation, and raises privacy concerns. The statement from the Office of Management and Budget (OMB) indicates that if S.J. Res. 3 reaches the President, senior advisors will recommend that U.S. President Donald Trump sign the bill into law to repeal the IRS regulation.