03.05.25

Senate Republicans Prioritize Americans’ Financial Freedom

“The Biden administration’s rule attempts to drive American cryptocurrency innovation overseas. This regulation undermines the purpose of DeFi technology: to enable individuals to freely buy, sell, and exchange digital assets. America’s goal should be to prioritize innovation, and this rule is the opposite.” – Sen. Ted Cruz (R-Texas)

“Following their election loss, the Biden-Harris CFPB rushed an eleventh-hour rule to attack non-bank digital consumer payment applications. This one-size-fits-all solution in search of a problem unnecessarily expands the CFPB’s authority. Our legislation eliminates barriers to innovation, cuts red tape, and supports our job-creators.” – Sen. Pete Ricketts (R-Neb.)

PRESIDENT TRUMP AND REPUBLICANS ARE ROLLING BACK THE BIDEN ADMINISTRATION’S COSTLY REGULATORY AGENDA

  • “President Trump has set a goal of eliminating 10 regulations for every new one his Administration issues. Republicans in Congress could help him by reversing Joe Biden’s many overreaches, and soon.” (The Wall Street Journal: Editorial: Congress Lines Up Regulatory Vetoes – 2/21/25)
  • During President Biden’s time in office, his administration’s regulatory costs “added up to more than $1.8 trillion – far exceeding any preceding administration on record,” leading to the creation of 356 million new hours of paperwork compliance. (American Action Forum: The Biden Regulatory Record – 1/29/25)
  • “The Biden administration agenda has included… a slew of enforcement actions against major cryptocurrency firms.” (Reuters: A Harris presidency would carry baton on financial industry crackdown – 7/23/24)
  • In an effort to support financial innovation and freedom, the Senate is working to overturn two Biden-era regulations:
    • An IRS rule that would define decentralized financial participants as brokers. (CoinDesk: U.S. Senate Expected to Vote on Erasing IRS's Crypto Broker Rule That Threatens DeFi: Source – 3/3/25)
    • A Consumer Financial Protection Bureau rule that gives itself the authority to regulate payment apps and digital wallets run by tech companies. (CoinDesk: U.S. Senate Expected to Vote on Erasing IRS's Crypto Broker Rule That Threatens DeFi: Source – 3/3/25)

TO ENSURE AMERICA REMAINS THE LEADER IN CRYPTOCURRENCY INNOVATION, THE SENATE VOTED TO OVERTURN AN IRS RULE TARGETING THE DIGITAL ASSET INDUSTRY

“The IRS rule on DeFi fundamentally misunderstands how decentralized technology works. Wyoming has been at the forefront of responsible digital asset regulation, and I've seen firsthand how regulatory clarity-- not overreach-- fosters innovation… These heavy-handed federal rules threaten to drive American crypto entrepreneurs overseas at a time when we should be cultivating this industry at home. Proud to join [Sen. Cruz] in rescinding this attack on the crypto community.” – Sen. Cynthia Lummis (R-Wyo.)

  • The Senate passed Sen. Cruz’s Congressional Review Act resolution, which overturns a Biden administration rule targeting the cryptocurrency industry that “requires decentralized finance, or DeFi, platforms to report transactions to the government just like stock brokerages do and centralized crypto exchanges soon will…” (S.J. Res. 3: Roll Call Vote #102 – 3/4/25; The Wall Street Journal: Republicans Want to Kill Tax-Reporting Rule for Some Crypto Trades – 1/31/25; Reuters: US Treasury finalizes new crypto tax reporting rules – 6/28/24)
  • The Biden-era rule “raises significant concerns for blockchain software developers, considering that other code developers have already been sanctioned for how their software is being used.” (CoinTelegraph: Blockchain Association sues IRS over crypto broker rules – 12/28/24)
  • The rule “threatens to extinguish American leadership in [decentralized finance] and undermine our nation’s competitive edge in financial technology innovation.” (Blockchain Association: Letter to Congressional Leaders – 2/19/25)
  • Overturning the rule “would bar the government from creating a substantially similar regulation.” (The Wall Street Journal: Republicans Want to Kill Tax-Reporting Rule for Some Crypto Trades – 1/31/25)

THE SENATE WILL ALSO VOTE TO OVERTURN THE CONSUMER FINANCIAL PROTECTION BUREAU’S RULE TARGETING DIGITAL WALLETS USED BY MILLIONS OF AMERICANS

“The Biden administration made a last-ditch effort to increase government supervision of non-bank payment apps like Venmo and PayPal by expanding the CFPB’s authority. But these types of apps are already regulated. And they accounted for just 1 percent of the CFPB’s consumer complaints in 2023. Why add another layer of bureaucracy? Apparently Democrats can’t help but see innovation as an opportunity for regulation.” – Senate Majority Leader John Thune (R-S.D.)

  • Last November, the Consumer Financial Protection Bureau (CFPB) “finalized a rule giving itself the authority to regulate big tech firms in much the same way the consumer watchdog oversees major banks.” (The Wall Street Journal: CFPB Gives Itself Oversight of Big Tech's Digital-Payment Apps – 11/21/24)
  • “The CFPB said that seven nonbanks qualify for the new scrutiny. Payments services from Apple, Google and Amazon, as well as fintech firms including PayPal and Block and peer-to-peer services Venmo and Zelle are impacted by the change… It makes the firms subject to ‘proactive examinations’ to ensure legal compliance, enabling it to demand records and interview employees.” (CNBC: CFPB expands oversight of digital payments services including Apple Pay, Cash App and PayPal – 11/21/24)
  • The CFPB rule is wide-ranging and its impact will be felt widely: “[M]ore than three-quarters of American adults have used these payment apps,” and the rule affects companies that have processed over 13 billion transactions. (Reuters: Tech groups sue US CFPB to block rule on payment apps, digital wallets – 1/16/25; The Washington Post: Top federal watchdog announces new oversight of tech giants – 11/21/24)
  • The CFPB has a history of suppressing innovation and crushing financial freedom: “The truth is that Democratic heads of the CFPB have put a higher priority on harassing businesses than protecting consumers… Businesses have often agreed to pay small fines to settle CFPB complaints to avoid costly litigation. [Sen. Elizabeth Warren (D-Mass.)] and the media cite the CFPB’s some $20 billion in ‘consumer relief’ over the last 13 years as proof that it’s protecting consumers. No, it’s proof that the CFPB can bully small businesses and startups that don’t have large legal departments to fight back.” (The Wall Street Journal: Editorial: Don’t Cry for the CFPB, Elizabeth Warren – 2/25/25)