Crypto groups urge Congress to keep mining and staking tax bill unchanged
The legislation seeks to resolve uncertainty over ‘phantom income’ by allowing taxpayers to choose when to recognise crypto rewards for tax purposes.
Three US digital asset industry groups have urged lawmakers to pass the Tax Clarity for Mining and Staking Act without changes, arguing that the bill would provide clearer tax rules for blockchain validation rewards.
The Blockchain Association, the Crypto Council for Innovation and The Digital Chamber sent a joint letter to the House Ways and Means Committee supporting H.R. 9175 as introduced. The bill, introduced by Representative Mike Carey, would amend the Internal Revenue Code to address the taxation of income from mining and staking digital assets.
Current IRS guidance treats mined and staked rewards as taxable income when received. The industry groups argue that the approach creates uncertainty, liquidity concerns and the risk of ‘phantom income’, where taxpayers may owe tax before they can monetise the assets.
H.R. 9175 would keep newly minted digital assets within ordinary income rules, but would allow taxpayers to elect to defer income recognition until disposal. Under that election, acquisition costs would be capitalised, and gains would be treated as ordinary income when the assets are sold or otherwise disposed of.
The groups oppose a proposed amendment that would impose a five-year limit on deferral. They argue that the cap would add compliance burdens while producing little revenue.
The bill remains before the House Ways and Means Committee. The debate highlights continuing disagreements over how the US tax system should treat digital asset rewards generated through blockchain validation.
Why does it matter?
The bill could shape how mining and staking rewards are taxed in the United States, affecting validators, miners, investors and institutions using blockchain networks. The debate is also about more than timing: it raises questions over whether digital assets should follow existing income-tax concepts or receive tailored rules reflecting how tokens are created, held and monetised. For the crypto industry, clearer rules could reduce compliance uncertainty; for critics, deferral may raise concerns over preferential treatment compared with other financial products.
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