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".

This law eliminates a December 2024 Internal Revenue Service rule that would have required certain participants in decentralized finance (DeFi) to report information about digital asset sales to the IRS. The rule, which was set to take effect on January 1, 2027, would have required these platforms to file Form 1099-DA reports with the IRS containing details about cryptocurrency transactions and customer information.

The law specifically targets non-custodial DeFi platforms, wallet providers, and trading services that would have been classified as brokers under the now-repealed rule. These entities would have been required to report gross proceeds from cryptocurrency sales and customer personal information such as names and addresses. The rule applied to persons who regularly provided services effectuating digital asset sales and met a "position to know" standard regarding transaction details.

Under the Congressional Review Act process used to pass this law, the IRS is prohibited from issuing the same rule or a substantially similar rule in the future without new legislative action from Congress. This means the agency cannot simply reissue the regulation without Congress passing new legislation authorizing it. However, the law does not affect earlier July 2024 regulations that still require custodial brokers and certain intermediaries to report gross proceeds and basis information for digital asset transactions.

The practical impact is that non-custodial DeFi participants no longer face the expanded reporting obligations that would have applied starting in 2027. Supporters of the law argued the rule imposed excessive compliance burdens on the digital asset industry, while opponents warned that eliminating the reporting requirement could create gaps in tax reporting and allow unreported cryptocurrency transactions. Digital asset investors and businesses should continue maintaining thorough transaction records for tax compliance purposes.