Cruz Resolution Overturning IRS Rule on Cryptocurrency Passes By Overwhelming Bipartisan Majority
WASHINGTON, D.C. – Yesterday, the United State Senate passed a resolution authored by U.S. Sen. Ted Cruz (R-Texas) to overturn a Biden administration midnight rule imposing regulations on software developers of decentralized financial (DeFi) technology. The resolution passed by an overwhelming bipartisan majority, 70-28.
The rule defined those developers as “brokers,” even though they did not touch any of the cryptocurrency being exchanged. The resolution is the first crypto-related measure to pass the Senate this Congress, and will now head to the House of Representatives for consideration.
Upon passage, Sen. Cruz said, “Last night’s vote was a victory for American innovation. In a midnight move, the Biden administration attempted to undermine American privacy and impose burdensome regulations on digital currency. Yesterday, an overwhelming bipartisan majority voted in support of my legislation to rescind this harmful regulation. I urge the House to pass this legislation expeditiously.”
The resolution was co-sponsored by Sens. Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Tim Sheehy (R-Utah), and Ted Budd (R-N.C.). Rep. Carey introduced the joint resolution in the House of Representatives.
Read the joint resolution here.
Blockchain Association CEO Kristin Smith said yesterday, “Today’s a bright day for DeFi – and all of crypto – in the United States. An incredible showing of bipartisan support passed Senator Ted Cruz’s Congressional Review Act resolution to roll back the DeFi-killing broker rule out of the Senate. It’s a hopeful sign that shows there is true bipartisan agreement in Washington that the American crypto industry deserves the freedom to grow and innovate here in the United States.”
BACKGROUND
The Internal Revenue Service rule that would be repealed by Sen. Cruz’s resolution in Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales. The rule was finalized on December 30, 2024.
Sen. Cruz’s resolution was endorsed by:
The Digital Chamber, Blockchain Association, DeFi Education Fund, Cedar Innovation Foundation, Uniswap, Paradigm, Cryptocurrency Council for Innovation, DCG, Stand With Crypto, Coin Center, Texas Blockchain Association, Crypto Freedom Alliance of Texas, Pennsylvania Blockchain Coalition, Ohio Blockchain Council, North Carolina Blockchain Initiative, South Carolina Blockchain, Virginia Blockchain Council, and California Blockchain Advocacy Coalition. The Club for Growth issued a “key vote” urging lawmakers to vote for the resolution.
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