On Wednesday, the US House Ways and Means Committee is set to evaluate a 114-page cryptocurrency tax proposal that omits an amendment which would have permitted stakers and miners to postpone paying taxes on their rewards until the actual sale of the tokens.
H.R. 10357, known as the Digital Asset Tax Certainty Act, was made public alongside the panel’s markup announcement on Monday. The legislative bundle fails to incorporate the reward-timing mechanism previously put forward by Representative Mike Carey in June via the Tax Clarity for Mining and Staking Act.
Such a clause would have granted taxpayers the option to either report freshly minted tokens as income upon receipt or treat them analogously to self-produced assets, deferring taxes until disposal.
Absent this specific measure, mining and staking proceeds will continue to face taxation immediately upon receipt or when coming under the beneficiary’s control, which frequently happens prior to liquidating them for fiat currency.
This legislative package arrives just as the Senate weighs whether to progress the CLARITY Act, a bill designed to clarify how the Commodity Futures Trading Commission and the US Securities and Exchange Commission share authority over the domestic digital asset landscape.
House crypto package covers fees, stablecoins, wash sales
Nevertheless, the draft still preserves several elements concerning mining and staking. It categorizes revenues generated from blockchain validation tasks as ordinary income, determines whether such earnings originate domestically or internationally, and permits eligible investment funds to stake digital currencies without jeopardizing their trust designation.
Additionally, the initiative aims to exempt individuals from reporting capital gains or losses when utilizing digital currencies to settle network and transaction fees totaling up to $10. It also outlines specialized tax guidelines for compliant US dollar-pegged stablecoins and allows eligible digital asset loans to take place without triggering taxable event classifications.
Alternative clauses introduce simplified record-keeping for heavily traded cryptocurrencies, expand constructive-sale and wash-sale regulations to cover virtual assets, and create an amnesty-style voluntary disclosure initiative for individuals looking to rectify past digital asset taxation infractions.
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Earlier in June, the committee released seven preliminary digital asset tax drafts ahead of a formal hearing centered on cryptocurrency taxation. Those initial frameworks addressed mining, stablecoins, staking, and initiatives intended to alleviate the reporting burden tied to digital asset transactions.
In response to those moves, the Digital Chamber, Crypto Council for Innovation, and Blockchain Association petitioned lawmakers to enact Carey’s proposal unmodified. These coalitions asserted that levying taxes on rewards prior to liquidity events generates cash flow hurdles for stakers and miners, while also objecting to a proposed modification that would have capped the deferment period at five years.
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Originally published at https://cointelegraph.com/news/us-house-crypto-tax-bill-mining-staking-reward-deferral?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
