Sen. Cruz, Rep. Carey, Colleagues Work to Overturn Biden Admin IRS Rule Sending American Cryptocurrency Innovation Overseas

WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) and Rep. Mike Carey (R-Ohio-15) introduced a joint resolution of disapproval to overturn the Internal Revenue Service’s (IRS) Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales rule. That rule defined decentralized financial (DeFi) participants as “brokers.” It undermines America’s digital asset industry by forcing DeFi participants to comply with burdensome information reporting requirements. The rule was finalized on December 30, 2024.

Upon introduction, Sen. Cruz said, “The Biden administration’s rule attempts to drive American cryptocurrency innovation overseas. This regulation undermines the purpose of DeFi technology: to enable individuals to freely buy, sell, and exchange digital assets. America’s goal should be to prioritize innovation, and this rule is the opposite. I call upon Congress to expeditiously take up this resolution, pass it, and send it to the President.”

Rep. Carey said, “The Biden administration’s digital asset broker rule represented clear overreach from the IRS. If it is enforced, this rule will result in a tidal wave of new digital asset returns, overwhelming IRS resources—a truth even acknowledged by former President Biden’s own IRS officials. We are proud to work with Senator Cruz on this important effort to avoid needlessly complicating the tax-filing process.”

Sen. Cruz was joined by Sens. Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Tim Sheehy (R-Utah), and Ted Budd (R-N.C.) in introducing the joint resolution.

Rep. Carey introduced the joint resolution in the House of Representatives.

Read the joint resolution here.

BACKGROUND

Sen. Cruz and Rep. Carey’s CRA joint resolution of disapproval is supported 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.

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