U.S. Senator Ted Cruz and Representative Mike Carey have introduced a joint resolution to overturn an IRS rule affecting the digital asset industry. The rule, finalized on December 30, 2024, classifies decentralized financial participants as “brokers,” requiring them to adhere to extensive information reporting requirements.
Senator Cruz expressed concerns about the regulation’s impact on innovation in the cryptocurrency sector. He stated, “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.”
Representative Carey also criticized the rule as an overreach by the IRS. He remarked, “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.”
Joining Senator Cruz in introducing the resolution were Senators Cynthia Lummis, Thom Tillis, Tim Sheehy, and Ted Budd. Representative Carey introduced the measure in the House of Representatives.
The resolution has garnered support from several organizations including The Digital Chamber and Blockchain Association.
