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. (119th Congress)
Summary
H.J.Res.25 is a joint resolution passed by Congress to disapprove a rule submitted by the Internal Revenue Service (IRS) regarding gross proceeds reporting by brokers who regularly provide services effectuating digital asset sales. The resolution invokes the Congressional Review Act, which allows Congress to overturn agency regulations. The disapproval means the IRS rule will have no force or effect.
Expected Effects
The primary effect of this resolution is to prevent the IRS from implementing the rule requiring brokers to report gross proceeds from digital asset sales. This will likely reduce the reporting burden on brokers dealing with digital assets. It may also delay or prevent increased tax revenue collection related to digital asset transactions.
Potential Benefits
- Reduced compliance burden for brokers dealing with digital assets.
- Potential for greater innovation and growth in the digital asset space due to reduced regulatory overhead.
- Avoidance of potentially complex and costly reporting requirements.
- May prevent overreach by the IRS in regulating emerging technologies.
- Could lead to further discussion and refinement of digital asset regulations.
Most Benefited Areas:
Potential Disadvantages
- Potential for decreased tax revenue collection from digital asset transactions.
- Increased difficulty in tracking and preventing tax evasion related to digital assets.
- May create uncertainty regarding the regulatory landscape for digital assets.
- Could be perceived as favoring the digital asset industry over traditional financial institutions.
- Potential for increased illicit activity using digital assets due to reduced transparency.
Most Disadvantaged Areas:
Constitutional Alignment
This resolution is aligned with the principle of legislative oversight of executive agencies, as outlined in Article I, Section 1 of the Constitution, which vests all legislative powers in Congress. The Congressional Review Act, which this resolution invokes, is a mechanism for Congress to check the power of the executive branch and ensure that agency regulations are consistent with congressional intent. The resolution does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).