Patrick McHenry, chairman of the House Financial Services Committee, was especially critical of the proposed new rules, which would essentially treat digital asset brokers the same way brokers for other financial products, like securities, are treated under tax law.
“The notice of proposed rulemaking on digital asset reporting requirements is another front in the Biden Administration’s ongoing attack on the digital asset ecosystem,” McHenry said. “Following the passage of the Infrastructure Investment and Jobs Act, numerous lawmakers of both parties made clear that any proposed rule must be narrow, tailored, and clear. I’m glad to see the delayed effective date and exemptions for other activities in the proposed rule mirror my bipartisan bill, the Keep Innovation in America Act. However, it fails on numerous other counts. Any additional rulemakings related to the other sections from the law must adhere to Congressional intent.”
According to the administration’s announcement, existing law calls for taxpayers to pay taxes on gains and also allows those eligible to deduct losses related to the sale of digital assets. This proposal would require digital asset brokers to offer a Form 1099-DA to “help taxpayers determine if they owe taxes, and would help taxpayers avoid having to make complicated calculations or pay digital asset tax preparation services in order to file their tax returns.”
Additionally, it adds, the regulations align these reporting requirements with those of other assets, and as such will “avoid preferential treatment between different types of assets.”
From X (formerly Twitter)
"Our #tax, #accounting, and tax information reporting experts took a deep look at the proposed regulations around #digitalasset reporting requirements. Hear more from our team, including the experts at @FORVIS, in our blog post here. #crypto #compliance https://ledgible.io/news/understanding-the-treasurys-proposed-digital-asset-reporting-requirements/"
McHenry, though, said the new rule proposal, as written, will ultimately harm the digital asset industry. “The Biden Administration must end its effort to kill the digital asset ecosystem in the U.S. and work with Congress to finally deliver clear rules of the road for this industry. I look forward to advancing my bipartisan solution… to fix these misguided reporting requirements, protect the privacy of market participants, and ensure the digital asset ecosystem can flourish here in the U.S.”
From X (formerly Twitter)
"The U.S. Treasury Department has proposed new tax reporting rules for #crypto, giving the industry its own Form 1099-DA and declaring digital asset #miners immune from future requirements."
The proposals are expected to go into effect in 2026, relating to digital asset exchanges and sales that took place in 2025. The proposed regulations will be open to public feedback until Monday, Oct. 30. Two public hearings have also been scheduled, one on Tuesday, Nov. 7 and another on Wednesday, Nov. 8, should the public comment period run over its allotted time.