Crypto Groups Push Congress to Pass Crypto Tax Bill As-Is
Major crypto industry groups urge lawmakers to approve a bill changing how mining and staking rewards are taxed, calling it 'essential.'
Image source: The Block
Crypto companies want a new tax rule — and they want it passed without changes. Several major crypto industry groups have written to U.S. lawmakers asking them to approve a tax bill that would change how certain crypto earnings are taxed.
First, two key terms. Mining is the process of using powerful computers to help run a cryptocurrency network, and getting paid in coins as a reward. Staking is locking up your crypto to help secure a network, also earning you reward coins. Both create brand-new coins for the people doing them.
The problem? Under current U.S. tax rules, people who earn these reward coins must pay taxes the moment they receive them — even if they haven't sold them for cash yet. Critics say this is unfair because the coins' value can swing wildly, and you owe tax before you've actually made any real money.
The new bill, called the Tax Clarity for Mining and Staking Act, would fix this. Here's what it changes:
- Taxes would be delayed until the coins are actually sold.
- People could choose to pay tax either when they sell, or when they first receive the coins.
- It aims to give clearer rules and keep the U.S. competitive in crypto.
But it's not a done deal. The bill hasn't yet passed the committee, and tax bills often get changed as they move through Congress. There's also pushback — the American Bankers Association has criticized the proposed tax break, and some worry about how long taxes should be allowed to be delayed.
Bottom line: The crypto industry sees this bill as a major win for fairness and clarity, but its final form is still uncertain.
This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/405603/crypto-industry-groups-urge-congress-pass-tax-staking-mining-bill-unchanged?utm_source=rss&utm_medium=rss