Republican Texas Sen. Ted Cruz is reintroducing legislation to repeal a provision from the 2021 bipartisan infrastructure package that expanded reporting requirements for cryptocurrency firms, the Daily Caller has learned.
Crypto firms are mandated by the regulation to collect names, addresses and transactions from users and report them to the Internal Revenue Service (IRS). In the 2021 infrastructure law, the definition of broker was expanded to encompass nearly the entire crypto industry and treats the firms as financial institutions. (RELATED: ‘Opposed To Any Accountability’: Ted Cruz Says FBI Won’t Answer Questions About Role In Capitol Riot)
“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,” Cruz told the Daily Caller. “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.”
READ THE BILL HERE:
Cruz previously introduced legislation to repeal the infrastructure law’s crypto regulations in November 2021. He invested $50,000 in bitcoin in January 2022 and has become an outspoken supporter of Texas’ crypto industry. He believes heightened regulations threaten users’ privacy, stifle innovation and incentivize firms to send jobs overseas.
Crypto industries such as cryptocurrency mining and blockchain technology have flocked to Texas because of the state’s friendly regulatory environment, cheap electricity and support from political leaders, according to a November 2022 report from the Texas Work Group on Blockchain Matters.
Cryptocurrency valuations boomed from 2020-21 prior to significant price drops and industry scandals in 2022, most notably the collapse of Sam Bankman-Fried’s crypto exchange FTX due to allegations of fraud.
The $1.2 trillion Infrastructure Investment and Jobs Act was passed in 2021 with support from 19 Senate Republicans and 13 GOP House members alongside the entire Democratic Congressional delegation.