Senator Ted Cruz Challenges IRS Cryptocurrency Regulation Using Congressional Review Act
Senator Ted Cruz of Texas is gearing up to challenge a recently implemented IRS cryptocurrency regulation through the Congressional Review Act.
The regulation mandates decentralized cryptocurrency exchanges to gather customer information, such as names and addresses, and issue tax forms to users. The crypto industry has raised concerns about this requirement, as reported by Axios.
Cruz’s initiative, with the backing of Senators Cynthia Lummis, Bill Hagerty, and Tim Sheehy, is part of a broader campaign to repeal what Republicans deem as the “midnight rules” of the current administration. These regulations were finalized towards the end of last year, and the Congressional Review Act allows Congress until mid-May to reverse them. Unlike Senate filibusters, CRA resolutions only need majority votes in both chambers to be approved.
Pushback Against Government Overreach
The IRS rule has faced criticism from crypto proponents who argue that it represents government overreach and poses a threat to privacy within the decentralized finance sector.
The crypto industry has taken legal action against the IRS and Treasury Department over the regulation, viewing the Congressional Review Act as a potential solution. Lawsuits have been filed claiming that the reporting requirements are unconstitutional and hinder innovation.
Cruz, who leads the Commerce Committee, is optimistic about the resolutions’ approval, stating that they will be reviewed promptly, as per Axios.