US Congress Reviews Seven Crypto Tax Bills Targeting Stablecoins and Staking

The US House Ways and Means Committee is considering seven draft bills that would significantly impact crypto taxation in the United States. The proposals aim to simplify taxation of digital assets, including deferring taxes on mining rewards and adding wash sale rules for digital assets.

At the heart of the discussion is the Digital Asset PARITY Act, which would prevent routine crypto payments from triggering tax reporting requirements. This provision addresses a long-standing complaint from digital asset users who have argued that current tax laws create unnecessary administrative burdens.

The bills also focus on stablecoins, with lawmakers seeking to limit tax reporting for routine crypto transactions involving these assets. Mining and staking rewards would be treated as non-taxable until they are sold, addressing concerns about phantom income. Active traders and dealers could gain access to mark-to-market accounting treatment, bringing crypto taxation closer to traditional securities markets.

Crypto lending is also under review, with the proposed framework extending securities lending rules to digital assets. This means qualifying loans would no longer be treated as taxable sales. However, not every change favors investors, as the bills introduce wash sale rules for the first time in crypto, requiring traders to wait 30 days before repurchasing assets after claiming a tax loss.