Senator Ted Cruz declared a win for the cryptocurrency community when President Donald Trump signed his Congressional Review Act into law.
The resolution blocks a prior Internal Revenue Service (IRS) ruling that would have redefined many cryptocurrency developers as “brokers,” subjecting them to a set of new complex reporting requirements.
The rule, introduced by the IRS last year, apparently aimed to bring “decentralized finance” (defi) projects under federal financial oversight by classifying certain software developers as “financial intermediaries.” However, some state leaders, like Cruz, argued that the move would have stifled innovation, pushed crypto development overseas, and opened the door to big government surveillance of the digital currency industry.
“The resolution is a victory for innovation, privacy, and economic freedom. We are protecting the developers who are building the future of cryptocurrency, making clear that the United States will not cede digital leadership to China, and preserving the ability of Americans to conduct transactions without government interference,” Cruz said in an April 12 statement following the bill’s signing.
The newly signed law reverses the IRS’ stance on crypto under former President Joe Biden, sending a strong sign to Congress that the Feds may not yet be prepared to oversee certain aspects of the crypto market. According to Cruz, the reversal is a move that industry advocates have long demanded, especially as America scrambles to stay competitive in the global cryptocurrency race.
Cruz has emerged as one of crypto’s most vocal advocates in the Senate. The senator has introduced a series of bills aimed at boosting the industry, and fending off what he views as federal overreach into digital financial systems.
Cruz’s past pro-cryptocurrency efforts include:
- The FLARE Act, designed to encourage crypto miners to repurpose stranded natural gas for clean energy mining operations.
- The Anti-CBDC Surveillance State Act, which would ban the Federal Reserve from issuing a central bank digital currency – a move Cruz warns could lead to an “American social credit system.”
- The Accept Resolution, which encourages members of Congress to adopt cryptocurrency as a form of payment for official transactions.
While the debate over crypto regulation is far from settled, the recent passage of Cruz’s resolution marks a rare moment of clarity for the industry and a legal win for those cautious of growing federal control over modern technology.
“I am committed to making Texas the number one place for Bitcoin mining,” Cruz added.