US House Tax Panel Proposes Ending Double Tax on Crypto Mining, Staking; Weighs Exemption for Small Payments
Summary
- The US House Ways and Means Committee released seven draft tax bills to overhaul the digital-asset tax system.
- The draft bills would ease the tax burden by addressing double taxation on mining and staking rewards and excluding taxation at the time of receipt.
- The proposals, including a capital gains tax exemption for small payments and the introduction of wash sale rules for digital assets, could affect the expansion of the US crypto industry and crypto payments.
Forecast Trend Report by Period
The US House Ways and Means Committee has released drafts of seven tax bills that would broadly reshape how digital assets are taxed in the US. The proposals have fueled expectations that the country’s tax treatment of crypto could become more favorable.
CoinDesk reported on June 5 that the House Ways and Means Committee published seven draft bills aimed at revising the Internal Revenue Service’s framework for taxing digital assets.
A central provision targets double taxation of mining and staking rewards. In the US, crypto obtained through mining or staking can be taxed when it is received and again when it is sold, drawing criticism from the industry.
The draft measures would ease the tax burden on newly created or acquired digital assets through mining and staking, or exclude taxation at the time of receipt.
They also include a proposal to exempt small capital gains from tax when crypto is used to buy coffee, send small stablecoin transfers or pay network gas fees.
At the same time, the wash sale rule used in traditional financial markets would be extended to digital assets. That could limit strategies in which investors realize a loss and immediately repurchase the same asset to reduce their tax bill.
If enacted, the bills could benefit the US mining and staking industry and encourage wider use of digital assets in everyday payments.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
