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Lawmakers Move Toward Crypto Tax Clarity
US lawmakers are preparing a new legislative initiative aimed at introducing a crypto tax “safe harbor” framework. The proposal is designed to reduce regulatory friction for everyday crypto users while creating clearer, more consistent tax rules for digital assets in the United States.
The bill seeks to modernize how cryptocurrencies are treated under US tax law, bringing them closer to traditional financial instruments without classifying them as securities.
Stablecoins and Small Transactions
A key part of the proposal focuses on stablecoins. Transactions involving regulated stablecoins would be exempt from capital gains tax, provided each transaction does not exceed $200.
Lawmakers argue that taxing small, routine stablecoin payments creates unnecessary complexity and discourages real-world usage, particularly for payments and transfers.
Staking and Mining Tax Deferral
The draft legislation also addresses staking and mining rewards, one of the most debated issues between the crypto industry and the IRS.
Under the proposal, taxes on staking and mining rewards could be deferred for up to five years. After this period, the income would be taxed as ordinary income based on its market value at that time. This approach is positioned as a compromise between industry calls for delayed taxation and current IRS policy.
Unified Tax Treatment for Crypto Assets
Another major element of the bill introduces unified tax rules for cryptocurrencies. Digital assets would follow tax principles similar to stocks and commodities, without being labeled as securities.
This would allow investors to calculate profits and losses using fair market value at the end of the year, simplifying reporting and reducing uncertainty.
Closing Wash Trading Loopholes
The proposal also aims to close existing loopholes by extending wash trading rules to digital assets. This would prevent traders from generating artificial losses through rapid buy-and-sell transactions, aligning crypto markets with traditional financial regulations.
BTCUSA Insight
If passed, this legislation could mark a turning point for crypto taxation in the US. By easing the burden on small transactions, offering structured rules for staking and mining, and aligning crypto with established asset classes, the bill signals a shift toward practical regulation rather than enforcement-driven oversight.
