Senator Ted Cruz
WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas) has reintroduced an amendment to repeal a provision from the 2021 infrastructure package that created new reporting requirements for many cryptocurrency and blockchain companies. The amendment would remove harmful regulations on the cryptocurrency industry that stifle innovation, endanger the privacy of Americans, and would push key aspects of the industry overseas. Sen. Cruz previously introduced this bill in 2021.
Upon reintroduction, Sen. Cruz said:
“Texas is a hub for jobs and innovation, so it makes sense that the Lone Star State has become a hub for the cryptocurrency community. While most legislators in Washington don’t understand this industry, they’re happy to regulate it without really knowing what it’s about or how it works. This bill would undo one of the hastiest and rashest regulations Congress has passed, and restore some common sense to how crypto companies are regulated.”
BACKGROUND
As originally drafted, the infrastructure package contains a provision that expands the definition of “Broker” to nearly all participants in the cryptocurrency structure, treating them as a financial institution. This means they would have to report consumer information to the Internal Revenue Service (IRS), even if these participants do not have access to that information. This mandate to collect names, addresses, and transactions from customers means almost every company even tangentially related to cryptocurrency may suddenly be forced to surveil their users. Sen. Cruz’s bill would repeal this provision.
Read the full text of the bill here.
