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06/23 03:47

Crypto groups back bill allowing miners and staker

#TradFi Trading Strategies Sharing Challenge #BTC Prophet: 20-Day 380 Million HTX Challenge #HTX Invites You to Share 600K USDT in Gift Packs Crypto groups back bill allowing miners and stakers to defer taxes until sale Crypto groups back bill allowing miners and stakers to defer taxes until sale source-logo ambcrypto.com 4 h image Three of the largest U.S. crypto advocacy organizations have urged Congress to pass legislation that would allow digital asset miners and stakers to defer taxation on newly created tokens until those assets are sold. In a joint letter sent to the House Ways and Means Committee, the Blockchain Association, Crypto Council for Innovation and The Digital Chamber voiced support for H.R. 9175, the Tax Clarity for Mining and Staking Act, and called on lawmakers to approve the bill as introduced. The groups described the proposal as a “balanced compromise” that would address years of uncertainty surrounding the taxation of mining and staking rewards while preserving eventual income recognition. Bill creates optional tax-deferral framework Representative Mike Carey introduced the legislation. It would establish a new framework for taxing newly minted digital assets received through mining and staking activities. Under current IRS guidance, miners and stakers generally recognize taxable income when rewards are received. The proposed bill would preserve that treatment as the default option. However, it would also allow taxpayers an alternative approach that defers income recognition until the assets are disposed of. If a taxpayer makes that election, newly minted digital assets would not be included in gross income when received. Instead, gains would be recognized when the assets are sold or otherwise disposed of. Supporters argue that the approach addresses concerns that taxpayers can face tax liabilities before they have converted rewards into cash.

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