Senate Votes to Advance Sen. Cruz Resolution Overturning IRS Cryptocurrency Regulation for Presidential Signature

WASHINGTON, D.C. – Today, the United States Senate voted 70-28 on final passage of a 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 had previously passed the House.

The rule defined those developers as “brokers,” even though they did not touch any of the cryptocurrency being exchanged. The resolution has passed both chambers of Congress and now awaits the President’s signature to become law.

Upon passage, Sen. Cruz said, “Cryptocurrency has become a leading driver in creating new markets and diversifying our economy. The American people know it and support crypto, and that support was reflected this evening in the overwhelming bipartisan majority that voted for my resolution. I look forward to the President signing it into law and I am proud to be leading the fight to defend cryptocurrency from Biden’s abusive regulatory assault.”

An industry letter, signed by more than 75 members of the Blockchain Association, called for passage of Sen. Ted Cruz’s (R-Texas) CRA.

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The Internal Revenue Service rule that would be repealed by Sen.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.

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