The Senate pushed forward the repeal of a cryptocurrency regulation former President Joe Biden instituted in the waning days of his presidency via a rarely used repeal method.
The Internal Revenue Service rule pushed by the Biden administration in December would require more reporting on cryptocurrency by providers, which critics have said would add challenges to the emerging industry.
Tuesday, the Senate passed a joint resolution 70-27 disapproving of the rule under the Congressional Review Act. The resolution must be approved by the House of Representatives and signed into law by President Donald Trump for the rule to be revoked.
Prior to this year, the Congressional Review Act had successfully overturned 20 rules, according to the Congressional Research Service. The method overturned one rule in the 107th Congress, 16 in the 115th Congress, and three in the 117th Congress.
Trump’s crypto czar, David Sacks, said Tuesday that the White House supports the effort and would recommend that the president sign the legislation into law if it gets to his desk.
“This rule, issued as a midnight regulation in the final days of the previous Administration, would stifle American innovation and raise privacy concerns over the sharing of taxpayers’ personal information, while imposing an unprecedented compliance burden on American DeFi companies,” the statement of administration policy shared by Sacks said.
“This Administration will continue to put the American people first by fostering a regulatory environment that supports innovation, creates jobs, and improves economic wellbeing for all Americans,” the statement continued.
The method used to push forward the repeal has rarely been used since it was signed into law in 1996 due to its limitations.
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The law allows Congress to block final rules at executive agencies from going into effect via a joint resolution passed by a simple majority in both chambers of Congress and signed into law by the president. If the president does not support the joint resolution, Congress can also enact it through a veto override.
The method can be used within 60 legislative days of a rule being finalized and has been exclusively utilized at the beginning of a new president’s term since it became an option less than 30 years ago.
