SJRES 3: A joint resolution 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".

SJRES 3 in plain English: This joint resolution would cancel an IRS rule issued on December 30, 2024, that requires participants in decentralized finance (DeFi) transactions to report information about digital asset sales to the IRS. If passed, the rule would have no legal effect.

Stated purpose

This resolution disapproves and cancels an IRS rule issued December 30, 2024, that would require persons who facilitate decentralized finance (DeFi) transactions to report information about digital asset sales to the IRS.

Key points

• Nullifies an IRS rule requiring DeFi brokers to report digital asset sale information to the IRS
• Targets a rule issued by the IRS on December 30, 2024
• Uses the Congressional Review Act process to overturn the agency regulation

Arguments supporters make

• DeFi platforms are fundamentally different from traditional brokers — they often have no central operator — so forcing them to report like banks is technically impossible and would effectively ban a whole category of technology.
• The rule overreaches by imposing surveillance-style data collection on ordinary crypto users without clear authorization from Congress, threatening financial privacy.
• Canceling the rule protects American innovation in blockchain and decentralized finance from being driven overseas by unworkable regulations.

Arguments opponents make

• Without this reporting requirement, a large category of taxable transactions goes largely untracked, making it easier to avoid paying taxes that are already legally owed.
• Congress passed laws directing the IRS to treat digital asset brokers like other financial brokers, and this rule was the IRS carrying out that instruction — blocking it undermines that intent.
• Repealing reporting rules for DeFi while keeping them for traditional finance creates an uneven playing field and a loophole that wealthier, tech-savvy investors can exploit.

Tradeoffs

Canceling the rule reduces compliance burdens and preserves privacy for DeFi participants but also reduces the IRS's ability to verify that taxes on digital asset gains are being paid, potentially shifting more of the tax burden onto other taxpayers.

Current status in Congress: Passed Senate.

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