{"id":20780,"date":"2026-06-23T05:57:01","date_gmt":"2026-06-23T05:57:01","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/06\/23\/crypto-lobby-fights-five-year-cap-in-staking-and-mining-tax-bill\/"},"modified":"2026-06-23T05:57:01","modified_gmt":"2026-06-23T05:57:01","slug":"crypto-lobby-fights-five-year-cap-in-staking-and-mining-tax-bill","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/06\/23\/crypto-lobby-fights-five-year-cap-in-staking-and-mining-tax-bill\/","title":{"rendered":"Crypto lobby fights five-year cap in staking and mining tax bill"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/media.crypto.news\/2024\/04\/crypto-news-What-you-need-to-know-about-the-IRSs-crypto-question-on-tax-returns-option02.webp\" \/><\/p>\n<div>\n<p class=\"is-style-lead\">Three crypto trade groups have asked Congress to pass the Tax Clarity for Mining and Staking Act without changes.\u00a0<\/p>\n<div id=\"cn-block-summary-block_ed8cf961f86cf7b6781cada24f1d312e\" class=\"cn-block-summary\">\n<p>\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/p>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Crypto lobby groups want Congress to pass H.R. 9175 without changes to protect validator rewards.<\/li>\n<li>The bill lets miners and stakers choose tax timing when receiving or selling crypto rewards.<\/li>\n<li>Banks argue deferred taxation would favor crypto yield over dividends, interest and other savings products.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>The Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber made the request in a June 21 <a href=\"https:\/\/digitalchamber.org\/wp-content\/uploads\/2026\/06\/JointLetterinSupportofH.R.9175TaxClarityforMiningandStakingAct.pdf\" target=\"_blank\" rel=\"nofollow\">letter<\/a> to committee leaders Jason Smith and Richard Neal.<\/p>\n<p>The groups said the bill should pass \u201cas introduced\u201d because it would give miners and stakers clearer tax rules. They wrote that \u201cafter years of uncertainty,\u201d the proposal offers a compromise for builders and lawmakers.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>Bill targets tax timing for rewards<\/strong><\/h2>\n<p>The dispute centers on when mining and staking rewards should be taxed. Under current IRS guidance, miners and stakers may owe tax when they receive rewards, based on the market value at that time. The crypto lobby calls this \u201cphantom income\u201d because users may owe tax before they sell the asset.<\/p>\n<p>H.R. 9175 would let taxpayers choose when to recognize rewards for tax purposes. They could pay tax when they receive the crypto or defer it until they sell or dispose of it. The groups said this approach keeps income taxable while reducing pressure to sell tokens to cover tax.<\/p>\n<p>The letter also said proof-of-work and proof-of-stake networks secure more than $1.7 trillion in value. The groups argued that clearer rules would help ensure these networks \u201ccan be secured by Americans in America.\u201d<\/p>\n<h2 class=\"wp-block-heading\"><strong>Five-year cap draws industry warning<\/strong><\/h2>\n<p>The bill has not moved beyond the House Ways and Means Committee. It was introduced before a June legislative hearing as part of a wider crypto tax package. The package also includes the PARITY Act, which would direct the IRS to review small crypto transactions.<\/p>\n<p>Rep. Steven Horsford filed an amendment that would limit reward tax deferral to five years. Crypto Council for Innovation CEO Ji Hun Kim opposed the change in a post on X, saying it would \u201cbreak\u201d the bill and raise \u201cnegligible revenue.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">For years, CCI has argued for proper taxation of staking rewards. Rep. Horsford\u2019s amendment would unfortunately break H.R. 9175, replacing it with a 5-year forced-sale clock on staking and mining rewards that JCT says raises negligible revenue. We greatly appreciate his\u2026 <a rel=\"nofollow\" href=\"https:\/\/t.co\/Lmt4OfxfxI\">https:\/\/t.co\/Lmt4OfxfxI<\/a><\/p>\n<p>\u2014 Ji Kim (@_jikim) <a rel=\"nofollow\" href=\"https:\/\/x.com\/_jikim\/status\/2069171730892153020?ref_src=twsrc%5Etfw\">June 22, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The joint letter made a similar argument. It said a five-year limit would add recordkeeping costs and force taxpayers to track time-based recognition events across wallets and accounts. The groups said the amendment would bring back the problems the bill seeks to fix.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Banks and tax critics push back<\/strong><\/h2>\n<p>The American Bankers Association has <a href=\"https:\/\/bankingjournal.aba.com\/2026\/06\/proposed-tax-break-for-crypto-yield-could-reshape-how-americans-save\/\" target=\"_blank\" rel=\"nofollow\">opposed<\/a> the measure. The banking group said the bill would treat crypto rewards differently from dividends, bank interest, and other returns that taxpayers report each year. It said the proposal would show \u201cclear favoritism\u201d for crypto over other asset classes.<\/p>\n<p>The banking group argued that delayed taxation could help crypto rewards compound in ways common savings products cannot. It said the bill could reshape how Americans compare yield from crypto, bank accounts, and traditional investments.<\/p>\n<p>crypto.news earlier <a href=\"https:\/\/crypto.news\/crypto-tax-bills-draw-scrutiny-as-house-hearing-opens\/\" target=\"_blank\">reported<\/a> that the broader House crypto tax package drew scrutiny at a June 9 hearing. Mike Kaercher of the NYU Tax Law Center <a href=\"https:\/\/crypto.news\/house-committee-unveils-crypto-tax-plan-that-could-reshape-defi\/\" target=\"_blank\">warned<\/a> that reward deferral could act as a tax subsidy and raise abuse concerns. <a href=\"https:\/\/crypto.news\/congress-revives-crypto-tax-reform-as-clarity-negotiations-intensify\/\" target=\"_blank\">Coinbase<\/a> tax executive Lawrence Zlatkin said current rules create confusion, hard compliance work, and pressure on the IRS.<\/p>\n<p>The debate now sits with Congress. Crypto groups want the bill passed unchanged to settle reward tax timing. Banking groups and tax critics want lawmakers to avoid giving digital assets special treatment in the tax code.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/crypto.news\/crypto-lobby-fights-five-year-cap-in-staking-and-mining-tax-bill\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Three crypto trade groups have asked Congress to pass the Tax Clarity for Mining and Staking Act without changes.\u00a0 Summary Crypto lobby groups want Congress to pass H.R. 9175 without changes to protect validator rewards. The bill lets miners and stakers choose tax timing when receiving or selling crypto rewards. Banks argue deferred taxation would [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":20781,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-20780","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=20780"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20780\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/20781"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=20780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=20780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=20780"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=20780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}