The Blockchain Association has submitted crypto tax proposals to Congress and met with House lawmakers working on a crypto tax bill, outlining specific changes to how digital assets are taxed.
The Association is advocating for a de minimis tax exemption on low-dollar crypto transactions, arguing that tax reporting for negligible gains or losses imposes disproportionate costs on individuals and overwhelms tax administration without generating meaningful revenue.
Additionally, the group proposes that stablecoins be treated as cash for ordinary purchases, and supports extending wash-sale rules to digital assets to limit investors’ ability to claim losses if they repurchase the same asset within a specified period.
The Association also argues that tax reporting should safeguard taxpayer privacy while enabling effective enforcement against illicit crypto activities, emphasizing the need for a balanced approach.
Regarding mining and staking, the Association proposes that rewards be treated as self-created property and taxed only when sold or disposed of, rather than upon receipt, differing from current interpretations where rewards are often taxed as income immediately.
These efforts occur amidst broader legislative debate, with Republican Senator Cynthia Lummis introducing a bill in July to tax-exempt some crypto transactions, while Democratic Senator Elizabeth Warren has opposed the bill, arguing that a de minimis exception would cost the United States $5.8 billion.
Warren criticized a proposal that would exempt crypto transactions under $300 from income reporting, questioning why crypto should have different reporting standards than gold or stocks, highlighting the ongoing disagreement over crypto tax policies.
The Blockchain Association met with White House officials earlier this month to advance market structure legislation that includes provisions favorable to stablecoin rewards, further indicating its active engagement in shaping crypto tax legislation.
