Report: Ted Cruz to challenge IRS cryptocurrency rule
Senator Ted Cruz of Texas is gearing up to challenge a newly finalized IRS cryptocurrency regulation using the Congressional Review Act
The rule mandates decentralized cryptocurrency exchanges to gather customer information, such as names and addresses, and issue tax forms to users. This move has caused backlash from the crypto industry, as reported by Axios.
Cruz’s action, with the support of Senators Cynthia Lummis, Bill Hagerty, and Tim Sheehy, is part of a larger initiative to repeal what Republicans refer to as the “midnight rules” of the Biden administration.
These regulations were finalized at the end of last year, and the CRA allows Congress until mid-May to reverse them. CRA resolutions skip Senate filibusters, needing only majority votes in both chambers to pass, according to Axios.
Government overreach
The IRS rule has faced backlash from crypto advocates, who claim it represents government overreach and poses a threat to privacy in the decentralized finance ecosystem.
The crypto industry, which has taken legal action against the IRS and Treasury Department regarding the regulation, views the CRA as a potential solution.
The legal actions allege that the reporting requirements are unconstitutional and hinder innovation. Cruz, serving as the Chair of the Commerce Committee, has expressed optimism in the resolutions’ approval, stating that they will be reviewed promptly, as per Axios.
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