Crypto groups urge Congress to pass staking, mining tax bill as introduced

A coalition of crypto lobbying organizations — the Blockchain Association, the Crypto Council for Innovation and The Digital Chamber — urged Congress to pass the Tax Clarity for Mining and Staking Act "as introduced" in a letter to House Ways and Means Committee Chair Jason Smith and top Democrat Richard Neal.

The groups said the bill would provide clarity on how crypto rewards are taxed and ensure blockchains "can be secured by Americans in America." The bill responds to long-standing industry concerns that mining and staking rewards are treated as taxable income when received, a practice the letter called "taxation of phantom income" that can cause liquidity problems.

It would let miners and stakers choose to pay taxes when they receive rewards or when they sell the assets, which lobbyists said "ensures income is recognized while avoiding immediate taxation before taxpayers can monetize the asset." The measure was introduced earlier this month but has not advanced past Ways and Means.

United States

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