House Financial Service Committee Chairman French Hill has expressed approval following the House's passage of H.J. Res 25. This resolution aims to overturn the Biden Administration’s 'Broker Rule,' which, according to Hill, restricts innovation within the digital asset sector.
Hill stated, "The Biden Administration’s controversial ‘Broker Rule’ is a clear example of government overreach that threatens to push American digital asset development overseas. I was proud to protect America’s leadership in the digital asset ecosystem and vote to overturn this harmful, anti-innovation midnight rulemaking."
He also emphasized his commitment to bipartisan efforts: “I look forward to working in a bipartisan manner to ensure the digital asset reporting requirements from the Infrastructure Investment and Jobs Act match the technology’s operation. We must bring legal and regulatory certainty to ensure these technologies and entrepreneurs can flourish here in the United States.”
If enacted into law, this joint resolution would invalidate an IRS requirement for brokers involved in decentralized financial transactions to report specific details about digital asset sales. The rule currently categorizes DeFi software providers that do not hold users' assets as “brokers,” imposing significant reporting obligations that could hinder privacy and technological advancement in the U.S.