A group of 18 bipartisan US House lawmakers is pushing the country’s tax agency to review its rules on crypto staking taxes before the start of 2026.
In a letter sent to Internal Revenue Service acting commissioner Scott Bessent on Friday, the lawmakers, led by Republican Mike Carey, asked for a review and update guidance on “burdensome” crypto staking tax laws.
“This letter is simply requesting fair tax treatment for digital assets and ending the double taxation of staking rewards is a big step in the right direction,” Carey said.
The letter calls for taxes from staking rewards to be applied at the time of sale, so that “stakers are taxed based on a correct statement of their actual economic gain.”
Mike Carey is leading lawmakers to change crypto staking tax rules. Source: Mike CareyThe lawmakers argued that the current laws, which see stakers taxed upon receiving rewards and again when selling them, are hindering participation in the staking market, when the laws should be designed to support a fundamental part of certain blockchains.
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“Millions of Americans own tokens on these networks. Network security — and American leadership — requires those taxpayers to stake those tokens, but today the administrative burden and prospect of over taxation discourages that participation,” the lawmakers wrote.
The letter concludes by asking if there are any administrative barriers to updating the guidance before the end of the year, and asserts that they should be changed to support the current administration’s goal of “strengthening US leadership in digital asset innovation.”
Not the only push for changes to crypto tax rules
On Saturday, House representatives Max Miller and Steven Horsford also introduced a discussion draft aiming to ease the tax obligations on crypto users by exempting small stablecoin transactions from capital gains taxes and offering a deferral option for staking and mining rewards.
In terms of staking, the reps went a slightly different route by opting for a referral option as opposed to a complete change in the current laws.
The proposal outlines that taxpayers would be allowed to elect to defer income recognition on staking or mining rewards for up to five years, rather than being taxed immediately after receiving them.
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Source: https://cointelegraph.com/news/us-lawmakers-push-to-fix-staking-double-taxation-before-2026?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
