Intense Crypto Agenda in the US Senate This Week! Here are the Details of the Expected Positive Development

The US Senate is preparing to vote this week on a decision to repeal an Internal Revenue Service (IRS) rule that has drawn strong opposition from the cryptocurrency sector due to its potential impact on decentralized finance (DeFi).

According to a source close to Senate planning, lawmakers are using the Congressional Review Act (CRA) to challenge this regulation and another last-minute rule affecting digital payment applications by the Consumer Financial Protection Bureau (CFPB).

The IRS rule introduced in December attempted to expand the definition of intermediaries required to report tax information. This change faced resistance from the crypto sector, which argued that DeFi platforms would be unfairly targeted. While Senator Ted Cruz leads the Senate's decision to eliminate the IRS regulation, Senator Pete Ricketts is leading a similar effort against the CFPB rule.

Majority Leader John Thune said, “The Biden administration did everything in its power to hinder financial innovation in the United States by threatening to send digital asset companies to overseas countries.” He added, “The Senate is working to repeal these burdensome regulations one by one to restore the financial freedom of the American people.”

The Financial Services Committee of the House of Representatives recently introduced a resolution targeting the IRS rule, paving the way for a vote in the House of Representatives. If the Senate also approves this decision, the President's signature will be required for the decision to become law.

Senator Cruz said, “The Biden administration issued a central non-financial rule that will directly and immediately harm American crypto innovation and redirect development to overseas countries with a midnight move” and added, “This week Congress will vote on my decision to repeal this regulation. I am confident we will do this.”

CRA imposes strict deadlines for the repeal of federal agency regulations, as each measure must be repealed within a limited legislative period after its adoption. The Senate's efforts reflect the broader priorities of Republicans and recall moves to eliminate regulations imposed by Democratic predecessors of former President Donald Trump.

The CFPB rule, also targeted by lawmakers, aims to regulate digital wallets and large technology companies processing high-volume consumer payments such as Apple, Amazon, and Google under a framework similar to large US banks. Senator Ricketts criticized the rule as a rushed effort following the Biden administration's election loss.