#USCryptoStakingTaxReview
U.SUSCryptoStakingTaxReview lawmakers are pushing the Internal Revenue Service (IRS) to review and reform how cryptocurrency staking rewards are taxed ahead of the 2026 tax year. Under current IRS rules, staking rewards are treated as taxable income when received and again when sold, leading to what critics call double taxation. A bipartisan group of 18 House members—led by Republican Rep. Mike Carey—is asking the IRS to change this so that staking rewards are taxed only at the time of sale, better reflecting actual economic gains and reducing compliance burdens for investors. They’re also backing broader tax clarity efforts, including the PARITY Act, which could modernize crypto tax rules for staking, mining, and stablecoin transactions.
IN DETAIL:
Who: 18 bipartisan U.S. House lawmakers, led by Rep. Mike Carey.
What: Urging IRS to revise how crypto staking rewards are taxed.
Problem: Currently, staking rewards are taxed twice – when received and when sold.
Goal: Tax rewards only at sale, reflecting real profit.
Reason: Reduce double taxation, simplify rules, and encourage staking participation.
Timeline: Changes requested before 2026 tax year.
Impact: Clearer rules may benefit investors and support blockchain innovation.