Senator Ted Cruz of Texas is preparing to challenge a new IRS cryptocurrency rule using the Congressional Review Act. The rule requires decentralized exchanges to gather user information, sparking backlash in the industry.
The New IRS Rule
The new IRS rule mandates decentralized cryptocurrency exchanges to collect customer information, including names and addresses, and issue tax forms to users. This has led to protests from the crypto industry.
Support from Colleagues
Cruz's move is supported by Senators Cynthia Lummis, Bill Hagerty, and Tim Sheehy. This is part of a broader effort to repeal what Republicans call Biden's 'midnight rules.'
Criticism from the Crypto Industry
The IRS rule has drawn criticism from crypto advocates, who argue it constitutes government overreach and threatens privacy. The industry has filed lawsuits against the IRS, alleging the regulations are unconstitutional.
Cruz's initiative, backed by several senators, aims to use the Congressional Review Act to overturn the rule. The crypto industry views this as a key step in defending its interests and fostering innovation.
