Texas Senator Ted Cruz has opposed a new IRS regulation on cryptocurrencies, sparking concerns in the crypto community.
New IRS Tax Regulation
The new IRS rule requires crypto brokers to report extensive income from digital assets, a requirement from the 2021 infrastructure bill. Critics argue it could hinder innovation due to a misinterpretation of 'broker' and ignorance of blockchain's decentralized nature.
Senatorial Support
Cruz's initiative has gained support from Republican senators such as Cynthia Lummis, Tim Sheehy, and Bill Hagerty. The Congressional Review Act (CRA) allows Congress to overturn federal regulations with a simple majority vote within 60 business days.
Reaction from the Crypto Community
Various groups, including the DeFi Education Fund and the Blockchain Association, have challenged the IRS rule. They claim it imposes unreasonable demands on crypto entities, lacking the necessary data to comply, and criticize the IRS's broad definition of a 'broker'.
Cruz's challenge reflects a growing resistance to government interference in the blockchain sector. Many in the crypto community see the IRS rule as an attempt to restrict income from innovation.
