Three major U.S. crypto lobby groups sent a joint letter to House Ways and Means Committee leaders calling for passage of the Tax Clarity for Mining and Staking Act without amendments. The Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber oppose an amendment by Democratic Representative Steven Horsford that would cap the tax deferral period at five years. The bill, designated H.R. 9175 and introduced earlier in June, would allow miners and stakers to defer taxes on rewards until assets are sold rather than paying at receipt, addressing industry concerns that current rules tax unrealized gains and create liquidity problems.
H.R. 9175 Allows Tax Deferral Until Asset Sale
The bill gives miners and stakers the option to defer taxes on crypto rewards until the assets are sold rather than paying at the point of receipt. The crypto industry has argued that taxing rewards upon receipt amounts to taxing unrealized gains, creating liquidity problems for participants who have not yet converted tokens to cash. The legislation was referred to the Ways and Means Committee and has not yet advanced past committee.
Crypto Council CEO Calls Amendment a Dealbreaker
Ji Hun Kim, CEO of the Crypto Council for Innovation, posted on X that Horsford's amendment would "break" the bill and raise "negligible revenue." Kim added that significant concessions had already been made in framing the legislation. The lobbying groups wrote in their letter that renegotiating the compromise would risk reviving the problems the bill was designed to resolve. If the deferral window is shortened, stakers running long-term validator operations could face the same liquidity squeeze the bill aims to prevent.
American Bankers Association Opposes Competitive Tax Advantage
The American Bankers Association has argued that the legislation would give crypto yields a significant tax advantage over dividends, interest, and other traditional savings products. When a company pays a dividend, shareholders owe taxes that year. The bill would let staking rewards defer that obligation indefinitely, creating an asymmetry that the banking sector views as competitive favoritism embedded in the tax code.
Kraken Sent 56 Million Tax Forms to IRS in April
The staking tax debate sits alongside other crypto tax efforts in Congress. The PARITY Act, introduced in May, directs the IRS to study exemptions for small crypto transactions. Kraken disclosed in April that it sent 56 million tax forms to the IRS, with over 75 percent covering transactions worth less than $50, underscoring the compliance burden facing retail users.
FAQ
What does H.R. 9175 allow cryptocurrency miners and stakers to do?
H.R. 9175 would give miners and stakers the option to defer taxes on crypto rewards until the assets are sold rather than paying at the point of receipt.
Why do crypto lobby groups oppose the Horsford amendment?
The three lobby groups oppose Democratic Representative Steven Horsford's amendment because it would cap the tax deferral period at five years. Ji Hun Kim, CEO of the Crypto Council for Innovation, stated the amendment would "break" the bill and that significant concessions had already been made in framing the legislation.
What is the American Bankers Association's position on the staking tax bill?
The American Bankers Association has argued that the legislation would give crypto yields a significant tax advantage over dividends, interest, and other traditional savings products, creating an asymmetry that the banking sector views as competitive favoritism embedded in the tax code.
