The U.S. Senate will vote this week for a resolution attempting to overturn the Internal Revenue Service's crypto reporting rules. Industry players claim it threatens the decentralized financial sector.
A report was made that the US senator was trying to overturn IRS rules at the end of February.
In addition to the IRS Crypto rules, lawmakers are targeting the Consumer Financial Protection Bureau rules focused on digital payment applications.
Sen. Ted Cruz recently introduced a resolution on the IRS rules under the Congressional Review Act, and Sen. Pete Ricketts introduced another resolution to challenge the CFPB rules.
The CRA provides an additional layer of oversight for Congress, allowing lawmakers and government accountability directors to review federal agency rules before they become effective.
IRS broker rules trigger industry backlash
The IRS brokerage rules announced in December 2024 require decentralized cryptographic projects to disclose operational details and tax information. The crypto industry reacts negatively to regulations, claiming that its requirements curb US innovation
Meanwhile, the CFPB regulations introduced on January 10, 2025 propose to expand consumer protection into the digital asset sector. This includes Stablecoins and other crypto payment options, aiming to apply the e-fund transfer laws and regulatory E-guidelines to the digital payments ecosystem.
Analysts have also criticised the CFPB rules, warning that it could have a negative impact on tech companies that offer crypto wallets and payment apps.
If the Senate votes to repeal the rules, both the IRS reporting requirements and the CFPB payment application rules could be invalidated. The push to remove agency restrictions is in line with the wider efforts by the new administration under President Donald Trump to move away from the restrictive stance on cryptography seen under former President Joe Biden's government.
On March 3, the day after Trump's announcement on US strategic crypto sanctuaries, House representatives announced a new bipartisan crypto support initiative. House Republican Tom Emmer and Democrat Richie Torres lead the efforts of Congress' Crypto Caucus.
