U.S. House crypto tax package excludes mining, staking reward deferral

Traders Union
All News
Crypto
U.S. House crypto tax package

Highlights

U.S. House Ways and Means Committee's 114-page crypto tax package omits deferred taxation for mining and staking rewards, keeping such income taxable upon receipt or control.
The proposed bill classifies blockchain validator income as ordinary income, offers special tax treatment for stablecoins and digital asset loans, and extends wash-sale rules to crypto.
Industry groups like the Blockchain Association oppose the exclusion of reward-tax deferral, arguing immediate taxation creates liquidity pressure for miners and stakers.

Committee package reshapes digital asset tax rules

As reported by Cointelegraph, the U.S. House Ways and Means Committee is set to consider a 114-page crypto tax package on Wednesday after publishing the Digital Asset Tax Certainty Act, H.R. 10357, with its markup notice on Monday. The proposal does not include the reward-timing language from Representative Mike Carey’s Tax Clarity for Mining and Staking Act, introduced in June.

That omitted provision would have allowed taxpayers to choose between treating newly created tokens as income when received or handling them like self-created property and paying tax when sold. Without it, mining and staking rewards remain taxable when received or when they come under the recipient’s control, even if the holder has not yet converted them into cash.

The package still keeps several mining and staking-related elements. It would classify income from blockchain validator activities as ordinary income, set rules on whether that income is sourced inside or outside the United States and allow qualifying investment trusts to stake digital assets without losing trust status.

It also proposes that taxpayers would not recognize gains or losses when crypto is used to pay network or transaction fees of up to $10. Other measures include special tax treatment for qualifying U.S. dollar stablecoins, non-taxable treatment for qualifying digital asset loans, simplified accounting for widely traded crypto assets, and the extension of wash-sale and constructive-sale rules to crypto.

Industry implications as Congress weighs broader oversight

The committee’s action comes as the Senate considers whether to advance the CLARITY Act, which would define how the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission divide oversight of the U.S. crypto market. That timing places tax treatment and market structure questions on parallel tracks for the digital asset sector.

The House committee had circulated seven crypto tax drafts in June before a hearing on digital asset taxation. Those proposals covered stablecoins, mining, staking and steps aimed at reducing the tax-reporting burden tied to crypto transactions.

Industry groups, including the Blockchain Association, Crypto Council for Innovation and Digital Chamber, have urged Congress to pass Carey’s bill as introduced. They argue that taxing rewards before a sale can create liquidity pressure for miners and stakers, and they have also opposed an amendment that would have capped the deferral period at five years.

The package further includes a voluntary disclosure program for taxpayers seeking to correct earlier digital asset tax violations. For crypto businesses and investors, the current draft signals that Congress is moving ahead with a wider tax framework even as a key relief measure for mining and staking remains outside the bill.

Our earlier coverage of the Senate’s procedural vote on the CLARITY Act explained how the bill is intended to reshape U.S. crypto market oversight by clarifying the regulatory framework for digital assets. We noted the tight vote math and late-stage revisions aimed at winning Democratic support, with disputes focused on ethics language tied to senior officials and banking-sector concerns about stablecoin provisions and deposits.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.