Cruz Halts Privacy Legislation, Demands Law Enforcement Exemptions

Senator Ted Cruz (R-TX) blocked bipartisan privacy legislation aimed at shielding Americans from data brokers that sell sensitive personal information, arguing the bills could hinder law enforcement efforts to track violent offenders. The legislation, Senate Bill 2850 and its narrower counterpart S.2851, sought to extend privacy protections from federal officials to all U.S. citizens and high-risk groups, including survivors of domestic violence. Cruz, the sole objector, cited concerns that restricting data access could compromise public safety, particularly in locating convicted sex offenders and preventing harm to children title1^[1].

Senator Ron Wyden (D-OR), the bill's sponsor, emphasized that the legislation would address threats like doxxing, stalking, and targeted violence by curbing the sale of data such as home addresses and phone numbers. Data brokers, which profit from aggregating and selling Americans' location and financial information, have been linked to criminal activities, including the 2025 fatal home attack on former Minnesota Representative Melissa Hortman. The FBI suspects her assailant obtained her address through data broker records title2^[2].

Cruz acknowledged the need for privacy reforms but argued the bills required refinement to balance public safety and data protection. He proposed "clearer law-enforcement carve-outs" and expressed openness to collaborating with Wyden on revised language. This stance aligns with his broader skepticism of surveillance measures, including central bank digital currencies, and his advocacy for privacy in the cryptocurrency sector title3^[3].

The debate highlights growing concerns over data broker practices. Over 50 attacks on cryptocurrency holders in 2025, many involving perpetrators using online data to locate victims' homes, have intensified calls for regulatory action. Critics argue that data brokers operate with minimal oversight, selling information to governments and third parties without requiring warrants for commercially available data title4^[4].

Wyden, meanwhile, has launched a separate investigation into Dan Morehead, founder of Pantera Capital, alleging the crypto investor improperly avoided $100 million in U.S. taxes by exploiting Puerto Rico's tax incentives. The inquiry underscores broader scrutiny of high-net-worth individuals leveraging residency loopholes to evade federal obligations, a trend linked to Puerto Rico's Act 60 program title5^[5].

Cruz's objections delay immediate passage of the privacy bills but do not halt reform efforts. Lawmakers and advocates anticipate refined legislation that narrows data broker access while preserving investigative tools. The outcome could influence future debates on privacy, data security, and the regulation of digital assets, particularly as the crypto community seeks to mitigate risks from data exploitation title6^[6].