U.S. lawmakers introduced a bipartisan proposal to tax digital assets, taking into account small stablecoin transactions and offering a deferral for staking rewards. The bill, sponsored by Representatives Max Miller of Ohio and Steven Horsford of Nevada, aims to modernize the Tax Code to reflect the growing use of cryptocurrencies in payments. Its core objective is to exclude from income recognition low-profit transactions arising from the ordinary use of regulated payment assets by consumers. Under the measure, investors would not need to recognize gains or losses on stablecoin transactions up to $200 if the coin is issued by a licensed issuer under the GENIUS Act.
The proposal also creates a five-year deferral for income recognition on rewards earned from staking or mining, addressing concerns about phantom income. It would extend the existing tax regime for securities lending to certain digital asset lending schemes, apply wash-sale rules to actively traded cryptocurrencies, and allow traders and dealers to choose their coin accounting method. In December, under the GENIUS Act, the Federal Deposit Insurance Corporation published a proposal for rules governing the application process for issuing “stablecoins.” In the same month, the Commodity Futures Trading Commission launched a pilot program to use digital assets as collateral in derivatives markets.
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