Ted Cruz to challenge IRS crypto rule: report

Sen. Ted Cruz of Texas is preparing to challenge a recently finalized IRS cryptocurrency regulation using the Congressional Review Act.

The rule requires decentralized cryptocurrency exchanges to collect customer information, including names and addresses, and issue tax forms to users. This sparked backlash from the crypto industry. according to to an Axios report.

Cruz’s gesture, supported by Sens. Cynthia LummisBill Hagerty and Tim Sheehy, is part of a broader effort to repeal what Republicans call the Biden administration’s “midnight rules.”

These regulations were finalized late last year, and the CRA gives to Congress until mid-May to overthrow them. ARC resolutions bypass Senate filibusters, requiring only majority votes in both chambers to pass, according to Axios.

Government Overreach

The IRS rule attracted criticism from crypto advocates, who argue that it constitutes government overreach and threatens privacy in the decentralized financial ecosystem.

The crypto industry, which has filed lawsuits against the IRS and Treasury Department over the regulations, sees the CRA as a potential lifeline.

The lawsuits allege the reporting requirements are unconstitutional and stifle innovation. Cruz, who chairs the Commerce Committee, expressed confidence in the adoption of the resolutions, saying they will be considered “quickly,” according to Axios.