Austin News

The United States Senate has passed a resolution authored by U.S. Senator Ted Cruz to overturn a rule imposed by the Biden administration that affects software developers of decentralized financial technology. The resolution was approved with significant bipartisan support, achieving a 70-28 vote.

The contested rule categorized these developers as "brokers," despite their lack of direct involvement with the cryptocurrency transactions. This resolution marks the first crypto-related measure to pass in the Senate during this Congress and will now proceed to the House of Representatives for further consideration.

Senator Cruz commented on the passage, stating, "Last night’s vote was a victory for American innovation. In a midnight move, the Biden administration attempted to undermine American privacy and impose burdensome regulations on digital currency. Yesterday, an overwhelming bipartisan majority voted in support of my legislation to rescind this harmful regulation. I urge the House to pass this legislation expeditiously."

The resolution received co-sponsorship from Senators Cynthia Lummis, Thom Tillis, Tim Sheehy, and Ted Budd. Representative Carey has introduced the joint resolution in the House.

Kristin Smith, CEO of Blockchain Association, expressed optimism about the outcome: “Today’s a bright day for DeFi – and all of crypto – in the United States. An incredible showing of bipartisan support passed Senator Ted Cruz’s Congressional Review Act resolution to roll back the DeFi-killing broker rule out of the Senate. It’s a hopeful sign that shows there is true bipartisan agreement in Washington that the American crypto industry deserves the freedom to grow and innovate here in the United States.”

The IRS rule targeted by Senator Cruz's resolution pertains to Gross Proceeds Reporting by Brokers That Regularly Provide Services Effectuating Digital Asset Sales and was finalized on December 30, 2024.

The resolution has garnered endorsements from various organizations including 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 Council, Virginia Blockchain Council, and California Blockchain Advocacy Coalition. Additionally, The Club for Growth issued a "key vote" urging lawmakers to support this resolution.