Sponsors
11 Republican
Mike CareyOH-15
This legislation establishes clear federal tax rules for income derived from mining and staking digital assets. It permits taxpayers to elect to defer the inclusion of newly minted digital assets in their gross income until the assets are disposed of, rather than taxing them immediately upon receipt. Additionally, the bill allows widely traded fixed investment trusts to engage in digital asset staking without losing their tax status as trusts, and provides formal statutory definitions for mining, staking, and digital assets.
This bill represents a highly favorable development for the cryptocurrency industry by addressing a long-standing tax grievance for network validators. Under current IRS guidance, mining and staking rewards are generally taxed as ordinary income at their fair market value the moment they are created or received. This treatment forces validators to sell a portion of their newly minted assets immediately to cover tax liabilities, creating liquidity strains and discouraging domestic validation activities.
By creating a statutory election to defer taxation until the disposition of these assets, this bill aligns the taxation of digital asset validation with traditional industries like agriculture or manufacturing, where producers are not taxed on created property until it is sold. Furthermore, the provision allowing investment trusts to engage in staking without jeopardizing their tax status is a major catalyst for institutional crypto adoption, potentially enabling spot exchange-traded funds (ETFs) to pass staking yields to retail and institutional investors. By establishing these clear, supportive rules, the bill significantly reduces tax ambiguity, lowers compliance friction, and protects the economic viability of domestic mining and staking operations.
Every member who has sponsored, cosponsored or voted on this bill. Pick a vote to see how each member voted on it, or narrow by party, name or state.
1 Republican