Blab Crypto
Crypto Lobby Groups Urge Congress to Pass Mining and Staking Tax Clarity Bill as Introduced
In a coordinated push, three major U.S. crypto trade associations have sent a single letter to the House Ways and Means Committee, urging that the Tax Clarity for Mining and Staking Act be approved in its original form. The missive, addressed to Committee Chair Jason Smith and senior Democrat Richard Neal, argues that the bill would finally settle the long‑standing question of how rewards earned through mining and staking are taxed.
The coalition—comprising the Blockchain Association, the Crypto Council for Innovation, and the Digital Chamber—presents the legislation as a durable compromise. It acknowledges concerns raised by some lawmakers while offering a clear tax framework that the industry says it can endorse.
Under the current tax code, mining and staking rewards are treated as taxable income at the moment they are received. The industry calls this “taxation of phantom income,” a practice that can create liquidity headaches for operators. The bill would allow miners and stakers to defer tax until the asset is sold, thereby easing cash‑flow constraints.
H.R. 9175 was introduced earlier this month by Representative Mike Carey (R‑OH). It remains confined to the Ways and Means Committee. A competing amendment, filed by Representative Steven Horsford (D‑AZ), would cap the deferral period at five years. Crypto Council CEO Ji Hun Kim tweeted on Monday that the amendment would “break” the bill and raise only “negligible revenue.” He noted that the industry had already made concessions in framing the bill as an election.
Opposition comes from the banking lobby. The American Bankers Association (ABA) warns that the proposal would grant cryptocurrencies a significant advantage over other asset classes. The ABA points out that dividends are taxed in the year they are paid, whereas the bill’s treatment of crypto rewards would differ, potentially skewing the playing field.
Beyond the deferral issue, the crypto sector has called for a tax exemption for small‑value transactions. Kraken, for example, reported in April that it had filed 56 million tax forms with the IRS, nearly a third of which related to trades worth less than $1 and more than 75 % to trades under $50. The industry argues that the reporting burden is disproportionate for such low‑value trades.
The Tax Clarity for Mining and Staking Act is part of a broader legislative push on crypto taxes. In May, lawmakers introduced the PARITY Act, directing the IRS to study possible exemptions for small crypto transactions. The bill also clarifies rules for staking‑related investment trusts and creates an optional deferral framework for validation rewards.
While the Ways and Means Committee has circulated several digital‑asset tax drafts, it has not yet scheduled a formal markup. According to the committee’s website, the bill was introduced on June 9 and remains under review.
The lobby’s letter emphasizes that the bill would “ensure blockchains can be secured by Americans in America.” A clear tax regime, they argue, would encourage domestic mining and staking operations and reduce the risk of foreign‑controlled infrastructure.
Conversely, the ABA’s concerns focus on potential favoritism. The organization notes that the proposed rule would treat crypto rewards differently from dividends and other income, potentially creating an uneven playing field.
The debate mirrors the broader tension between the crypto industry’s push for regulatory clarity and the financial sector’s insistence on parity with traditional assets. The industry maintains that the current tax treatment creates liquidity issues, while the banking lobby fears the bill would grant cryptocurrencies an unfair advantage.
The bill’s fate will hinge on the committee’s assessment of bipartisan support and the timing of the midterm elections. If it passes as introduced, it would provide a clear framework for taxing mining and staking rewards and could lessen the tax burden on small transactions.
At present, the bill remains in committee with no formal markup scheduled. Both the crypto lobby and the banking lobby continue to advocate for their respective positions, and the House Ways and Means Committee will decide whether to advance the bill or consider amendments such as the five‑year deferral proposed by Representative Horsford. The outcome will shape the tax landscape for miners, stakers, and the broader crypto ecosystem, as well as the financial industry’s view of digital‑asset taxation.
The coalition—comprising the Blockchain Association, the Crypto Council for Innovation, and the Digital Chamber—presents the legislation as a durable compromise. It acknowledges concerns raised by some lawmakers while offering a clear tax framework that the industry says it can endorse.
Under the current tax code, mining and staking rewards are treated as taxable income at the moment they are received. The industry calls this “taxation of phantom income,” a practice that can create liquidity headaches for operators. The bill would allow miners and stakers to defer tax until the asset is sold, thereby easing cash‑flow constraints.
H.R. 9175 was introduced earlier this month by Representative Mike Carey (R‑OH). It remains confined to the Ways and Means Committee. A competing amendment, filed by Representative Steven Horsford (D‑AZ), would cap the deferral period at five years. Crypto Council CEO Ji Hun Kim tweeted on Monday that the amendment would “break” the bill and raise only “negligible revenue.” He noted that the industry had already made concessions in framing the bill as an election.
Opposition comes from the banking lobby. The American Bankers Association (ABA) warns that the proposal would grant cryptocurrencies a significant advantage over other asset classes. The ABA points out that dividends are taxed in the year they are paid, whereas the bill’s treatment of crypto rewards would differ, potentially skewing the playing field.
Beyond the deferral issue, the crypto sector has called for a tax exemption for small‑value transactions. Kraken, for example, reported in April that it had filed 56 million tax forms with the IRS, nearly a third of which related to trades worth less than $1 and more than 75 % to trades under $50. The industry argues that the reporting burden is disproportionate for such low‑value trades.
The Tax Clarity for Mining and Staking Act is part of a broader legislative push on crypto taxes. In May, lawmakers introduced the PARITY Act, directing the IRS to study possible exemptions for small crypto transactions. The bill also clarifies rules for staking‑related investment trusts and creates an optional deferral framework for validation rewards.
While the Ways and Means Committee has circulated several digital‑asset tax drafts, it has not yet scheduled a formal markup. According to the committee’s website, the bill was introduced on June 9 and remains under review.
The lobby’s letter emphasizes that the bill would “ensure blockchains can be secured by Americans in America.” A clear tax regime, they argue, would encourage domestic mining and staking operations and reduce the risk of foreign‑controlled infrastructure.
Conversely, the ABA’s concerns focus on potential favoritism. The organization notes that the proposed rule would treat crypto rewards differently from dividends and other income, potentially creating an uneven playing field.
The debate mirrors the broader tension between the crypto industry’s push for regulatory clarity and the financial sector’s insistence on parity with traditional assets. The industry maintains that the current tax treatment creates liquidity issues, while the banking lobby fears the bill would grant cryptocurrencies an unfair advantage.
The bill’s fate will hinge on the committee’s assessment of bipartisan support and the timing of the midterm elections. If it passes as introduced, it would provide a clear framework for taxing mining and staking rewards and could lessen the tax burden on small transactions.
At present, the bill remains in committee with no formal markup scheduled. Both the crypto lobby and the banking lobby continue to advocate for their respective positions, and the House Ways and Means Committee will decide whether to advance the bill or consider amendments such as the five‑year deferral proposed by Representative Horsford. The outcome will shape the tax landscape for miners, stakers, and the broader crypto ecosystem, as well as the financial industry’s view of digital‑asset taxation.
