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This is a segment from the Forward Guidance newsletter. To read full editions, <\/em>subscribe<\/em><\/a>.<\/em><\/p>\n Congressional Republicans are working to reverse new IRS guidelines that require so-called \u201ccustodial brokers\u201d to report transactions.\u00a0<\/p>\n Rep. Mike Carey and Sen. Ted Cruz this week introduced corresponding resolutions seeking to \u201croll back the disastrous IRS broker rule<\/a>.\u201d\u00a0<\/p>\n The legislation comes weeks after a group of crypto lobbying firms sued the IRS over the rule. They claim the requirement \u201cexceeds the agencies\u2019 statutory authority, violates the Administrative Procedure Act (\u201cAPA\u201d) and is unconstitutional.\u201d\u00a0<\/p>\n As it currently stands, starting in 2025, custodial brokers are required to report gross proceeds<\/a>. In 2026, they will have to report cost basis for certain transactions.\u00a0<\/p>\n The final version of the 1099-DA form was published at the end of last year. While earlier drafts had included a section where brokers had to identify their \u201ctype\u201d of business, the final form nixed this box. It\u2019s a small change, but by cutting this section the IRS more or less punted the issue of DeFi actors.\u00a0<\/p>\n Even so, those opposed to the rule claim that the rule still imposes unfair reporting obligations on intermediaries and other actors in the crypto space.\u00a0<\/p>\n The resolutions have some co-sponsors (Sens. Cynthia Lummis and Tim Sheehy, to name a few), but neither have been scheduled for a markup or vote just yet. This is a hot-button issue in the crypto space though, so we\u2019d expect companies to be directing a significant amount of their lobbying efforts here.<\/p>\n Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter<\/a>.<\/strong><\/p>\n Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter<\/a>.<\/strong><\/p>\n Get alpha directly in your inbox with the 0xResearch newsletter<\/a> \u2014 market highlights, charts, degen trade ideas, governance updates, and more.<\/strong><\/p>\n
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