Senate Passes Cruz’s Resolution Overturning Biden’s Crypto Regulations

The U.S. Senate voted 70-28 in favor of a resolution written by Senator Ted Cruz (R) that overturns a Biden administration rule imposing new regulations on software developers of decentralized financial (DeFi) technology. The resolution, having now passed both chambers of Congress, is sent to President Donald Trump’s (R) desk for him to sign into law.

The contested rule, which was finalized by the Internal Revenue Service (IRS) on December 30, 2024, classified DeFi software developers as "brokers," despite their lack of direct involvement in cryptocurrency transactions. Critics of the decision argued the regulation unfairly targeted the cryptocurrency industry and stifled innovation in decentralized finance.

Following the Senate vote, Senator Cruz praised the bipartisan support for his resolution, commenting, “Cryptocurrency has become a leading driver in creating new markets and diversifying our economy. The American people know it and support crypto, and that support was reflected this evening in the overwhelming bipartisan majority that voted for my resolution.”

“I look forward to the President signing it into law and I am proud to be leading the fight to defend cryptocurrency from Biden’s abusive regulatory assault,” he concluded.

The resolution received strong backing from the cryptocurrency industry. More than 75 members of the Blockchain Association signed an industry letter supporting the repeal of the IRS rule. Moreover, major organizations like the Digital Chamber, DeFi Education Fund, and Stand With Crypto, endorsed Senator Cruz’s effort.

Supporters of the resolution argue that excessive regulation could drive blockchain developers and crypto businesses out of the U.S., which would limit growth in an emerging sector. However, opponents argue that financial oversight is necessary to prevent tax evasion and illicit transactions within the digital asset space.