Lawmakers in the US have put forward a discussion draft that would ease tax reporting for small stablecoin payments and let some crypto earners delay taxes on staking and mining rewards.
According to reports, the plan was circulated by Representatives Max Miller (R-Ohio) and Steven Horsford (D-Nev.). The proposal aims to clear up rules that many say are confusing for everyday users and small businesses.
Stablecoin Safe Harbor For Small Payments
Based on reports, the draft would create a safe harbor for regulated dollar-pegged stablecoins when they are used like cash. Under the plan, capital gains on stablecoin transactions under $200 would be exempt from tax.
That $200 threshold is meant to stop everyday buys — coffee, tips, small fees — from triggering tax paperwork and capital gains calculations. The exemption would only apply to stablecoins issued by a permitted issuer and that keep a stable peg to the USD.
A Deferral Option For Staking And Mining Rewards
Reports have disclosed another major change: taxpayers could elect to defer taxes on staking and mining rewards. Instead of being taxed the moment rewards are received, a taxpayer could choose to defer recognition for up to five years.
After that period ends the rewards would be taxed as ordinary income at fair market value. The choice would be voluntary, and some taxpayers might still face tax when they sell or convert assets later.
Image: TransFi
Mark-To-Market And Wash Sale Provisions Also Included
The draft does more than just touch stablecoins and staking. It would apply wash sale rules to digital assets, which limits the ability to claim artificial losses by quickly repurchasing the same token.
It also creates a path to elect mark-to-market accounting for certain traders, which would treat their holdings as sold at year-end for tax calculations. These moves are meant to align crypto tax practice closer to other parts of the tax code and to reduce gaps the IRS says exist.
A Draft, Not Yet A Bill
Lawmakers described the text as a discussion draft and have been talking with stakeholders and committees. The measure has not been formally introduced as a bill, and changes could come as it moves through the House Ways and Means Committee. If enacted, the framework is written to take effect for taxable years beginning after December 31, 2025.
Featured image from Chainalysis, chart from TradingView
