Crypto Industry Urges Congress to Pass Staking and Mining Tax Bill Without Changes

Three major crypto advocacy organizations are urging Congress to approve the Tax Clarity for Mining and Staking Act without amendments, arguing that the legislation would provide long-awaited certainty for digital asset investors and blockchain operators.

In a joint letter sent to House Ways and Means Committee Chairman Jason Smith and ranking Democrat Richard Neal, the Blockchain Association, the Crypto Council for Innovation and The Digital Chamber called on lawmakers to pass the bill in its current form.

The groups said the legislation offers a practical solution to years of uncertainty surrounding how staking and mining rewards should be taxed in the United States.

Proposed Bill Would Change How Rewards Are Taxed

Under current tax treatment, staking and mining rewards can be considered taxable income when received, even if the assets have not been sold. Crypto industry advocates argue this creates “phantom income” because taxpayers may owe taxes before converting the rewards into cash.

The proposed legislation would allow miners and stakers to choose whether to pay taxes when rewards are received or when the assets are sold. Supporters say the approach would reduce liquidity pressures while ensuring taxable income is still recognized.

Crypto Council for Innovation Chief Executive Officer Ji Hun Kim warned that a proposed amendment from Representative Steven Horsford, which would limit tax deferral to five years, could undermine the bill’s intended benefits and generate little additional tax revenue.

Banking Industry Raises Concerns Over Tax Advantages

The legislation has faced opposition from the American Bankers Association, which argues that the proposal would give cryptocurrency investors preferential tax treatment compared with traditional investments such as dividend-paying stocks.

Meanwhile, crypto advocates say reopening negotiations could delay a bipartisan agreement that is finally gaining momentum in Congress. The debate comes alongside broader efforts to reform digital asset taxation, including the PARITY Act, which would require the Internal Revenue Service to examine potential tax exemptions for small cryptocurrency transactions.

Industry participants argue that clearer tax rules could encourage blockchain participation and help ensure that staking and mining activity remains based in the United States.