A bipartisan House duo is drawing up a cryptocurrency tax framework that would provide a safe harbor for some stablecoin transactions and delay taxation of rewards earned by verifying blockchain transactions. Republican Representative Max Miller of Ohio and Democrat Representative Steven Horsford of Nevada have obliged with a rough draft that would align the taxation of cryptocurrencies with that of traditional securities. At that point, the reward would be taxed as income based on its fair market value.
The rough draft would align the taxation of cryptocurrencies with that of traditional securities, and rewards would be taxed as ordinary income based on their fair market value when earned. The proposal comes as lawmakers seek clarity on how digital assets should be taxed, while broader regulation remains under negotiation. If enacted, the plan would tax staking rewards as ordinary income based on fair market value at receipt. The measure is still in early stages and could change as negotiations on broader asset regulation continue. Industry groups have urged Congress to provide clear tax rules for stablecoins and staking to reduce uncertainty for users and businesses.
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