Senator Ted Cruz of Texas is preparing to challenge the IRS's newly finalized cryptocurrency regulation using the Congressional Review Act.

The rule requires decentralized cryptocurrency exchanges to collect customer information, including names and addresses, and issue tax forms to users. This sparked a backlash from the cryptocurrency industry, According to To the Axios report.

Cruz's move, supported by Senator. Cynthia LoomisBill Hagerty and Tim Sheehy are part of a broader effort to repeal what Republicans call the Biden administration's "midnight rules."

These regulations were finalized late last year, and the CRA Congress gives Until mid-May to drop them. CRA resolutions bypass the Senate filibuster and only require majority votes in both chambers to pass, according to Axios.

Government abuses

IRS rule It has drawn criticism An advocate of cryptocurrencies, who claim they constitute government overreach and threaten privacy in the decentralized financial system.

The cryptocurrency industry, which has filed lawsuits against the IRS and Treasury Department over regulation, sees the CRA as a potential lifeline.

The lawsuits claim the reporting requirements are unconstitutional and stifle innovation. Cruz, who chairs the Commerce Committee, expressed confidence that the resolutions would be passed, noting that they would be considered “expeditiously,” according to Axios.