US Lawmakers Renew Push to Clarify and Reform Crypto Staking Tax Rules
Crypto staking has quietly become one of the most common ways people participate in blockchain networks, yet the tax rules around it still feel stuck in an earlier phase of the industry. US lawmakers are now pushing the Internal Revenue Service to reconsider how staking rewards are treated, specifically the practice of taxing them twice. For many participants, the problem is not the existence of tax itself, but the timing and logic behind it.
Under the current approach, rewards can be taxed the moment they appear, even though the holder has not sold anything or realized cash. Later, if those same tokens are sold, taxes can apply again. That structure creates an odd situation where people may owe money on assets that remain illiquid or volatile, forcing sales simply to stay compliant.
The argument lawmakers are making is relatively simple. Staking rewards look less like wages and more like property being created over time. In traditional contexts, newly produced assets are usually taxed when they are sold, not when they come into existence. Applying that standard to staking would not reduce tax obligations, but it would make them more predictable and arguably more fair.
The issue matters because staking is no longer experimental. It is foundational to how many networks operate. Clearer treatment would reduce friction, lower compliance anxiety, and remove a quiet deterrent that currently discourages long-term participation. Whether the IRS moves or not, the debate signals growing pressure to align tax policy with how these systems actually work today.