#Cruz Challenges Crypto Tax Regulations#

U.S. Senator Ted Cruz is planning to challenge the Internal Revenue Service’s (IRS) new crypto tax rules that would require certain decentralized finance (DeFi) brokers to report gross transaction receipts. Cruz plans to introduce a Congressional Review Act (CRA) resolution seeking to overturn the rule. The rule, finalized in late December, requires “front-end service providers” that directly interact with users to collect and report user information such as names and addresses, and even to issue 1099 forms. Critics argue that the rule stifles innovation, distorts decentralized finance, and could cripple the industry. Cruz’s action has the support of leading Republican senators and is seen as a principled stand against government overreach into free enterprise and technological innovation. The debate highlights the tension surrounding the Biden administration’s overregulation of crypto. The Blockchain Association and other groups have filed lawsuits arguing that the requirements could decimate the industry.