The U.S. Congress is making another attempt at tax relief for low stablecoin transfers and crypto staking.
In a recent House proposal, lawmakers Max Miller (Ohio) and Steven Horsford (Nevada) sought tax exemptions for stablecoins valued at $200 or below.
Part of the draft read,
“The provision is intended to establish a per-transaction de minimis threshold of $200, consistent with the foreign currency transaction exception under section 988.”
In a statement, Rep. Miller said that the legislation was a “bipartisan effort” to ensure consumer protection.
“This bill would protect consumers making everyday purchases, ensure the rules are clear for innovators and investors, and strengthen compliance so everyone plays by the same rules.”
However, this was not the first time Congress had tried to push for U.S. crypto tax clarity.
Senator Lummis’ failed crypto tax plan
In July 2025, pro-Bitcoin Senator Cynthia Lummis floated a similar tax proposal that included a $300 exemption for small transactions.
She also advocated for tax deferral for staking and mining rewards during the amendment process of President Donald Trump’s Big Beautiful Bill. The exemption was to have an annual cap of $5,000 on crypto gains to avoid abuse.
However, the provisions didn’t make it to the final version of the bill after failing to reach the voting threshold. Some Democrats also opposed the proposal, arguing that it would result in a loss of government revenue.
Currently, the U.S. Internal Revenue Service (IRS) treats cryptocurrency as property, which can attract capital gains tax rates ranging from 10% to 37%.
For long-term investors, the tax rates are relatively favorable, ranging from 0% to 20%.
It remains to be seen whether the latest tax proposals will be included in the crypto market structure bill.
Stablecoin yield fight
Even so, the stablecoin yield paid out by crypto exchanges like Gemini and Coinbase, among others, continues to be opposed by the banking lobby.
According to them, it threatens community banks. They argued that deposit capital will shift to stablecoins in search of the 3%-4% rewards, rather than banks’ less than 1% yield on average checking accounts.
However, Gemini co-founder Tyler Winklevoss and other industry players are also pushing back against the banksters’ anti-competitive ‘overreach.’
Reacting to a collective industry letter to Congress to defend the stablecoin law GENIUS Act, Winklevoss stated,
“We are not going to let them (banks) get away with this. That’s why we signed onto this letter with 125+ other companies to defend the GENIUS Act as it is written.”
Final Thoughts
- Congress has revived the crypto tax exemptions for low stablecoin transfers.
- However, the fight against stablecoin rewards issued by exchanges continues.
