Texas Senator Ted Cruz is taking a stand against IRS crypto tax rules , a move celebrated by the crypto community. Cruz plans to use the Congressional Review Act (CRA) to oppose a controversial IRS regulation requiring extensive income reporting from crypto brokers. Critics argue the rule expands the definition of “broker” in a way that ignores the decentralized nature of blockchain technology. The IRS rule, introduced in the 2021 infrastructure bill, mandates crypto brokers to report income from digital assets like Bitcoin . However, many in the crypto sector view this as government overreach, claiming it stifles innovation. Cruz’s move has garnered widespread support, including backing from Republican senators such as Cynthia Lummis, a strong Bitcoin advocate, Tim Sheehy, and Bill Hagerty. The CRA allows Congress to overturn federal rules with a simple majority vote in both houses within 60 business days. Crypto advocates, including groups like the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council, have also filed lawsuits against the IRS. They argue the tax rule unfairly burdens participants in the decentralized crypto space. According to the petitioners, many crypto entities lack access to the data the IRS demands, making compliance nearly impossible. They also criticize the IRS for using an overly broad and “arbitrary definition” of broker , which they say fails to recognize how blockchain operates. Cruz’s challenge reflects broader resistance to perceived government interference in the blockchain industry . For the crypto community, the rule feels like an attempt to force them to surrender earnings from innovation. Ron Hammond of the Blockchain Association noted the issue has become a politically charged rallying point for many. Cruz remains optimistic that the CRA challenge will succeed. His stance aligns with his support for individual rights and opposition to government intrusion, resonating strongly with crypto enthusiasts. This move underscores the ongoing tension between regulators and the rapidly evolving cryptocurrency industry.
