The Blockchain Association has submitted a set of recommendations to the House Ways and Means Committee offices on Capitol Hill. The proposals focus on updating crypto tax rules to better align with the rapidly evolving digital asset landscape.
One key proposal is to tax staking rewards only upon sale, rather than immediately upon creation. This change aims to address liquidity and valuation challenges associated with taxing these rewards too early.
The group also advocates for a de minimis exemption on small digital asset transactions, exempting individuals from reporting income on low-value trades. Additionally, they propose treating stablecoins as cash for tax purposes, reducing the burden of disproportionate tax reporting obligations.