The U.S. Congress is once again trying to provide a tax exemption for small transactions using stablecoins and for cryptocurrency "staking".
Details of the new proposal
In a recent proposal in the House of Representatives, members Max Miller (from Ohio) and Steven Horsford (from Nevada) sought tax exemptions for stablecoins worth $200 or less. A part of the draft stated that the goal of this provision is to "create a de minimis threshold for each transaction of $200, consistent with the exception for foreign currency transactions under section 988 (of the Internal Revenue Code)."
Representative Miller described the legislation as a "bipartisan effort" aimed at ensuring consumer protection, stating: "This law will protect consumers who make everyday purchases, ensure that the rules are clear for innovators and investors, and promote compliance so that everyone plays by the same rules."
Previous failed legislative attempt
This was not the first time Congress has attempted to push for clarity in the tax system for cryptocurrencies in the United States.
· In July 2025, Bitcoin-supporting Senator Cynthia Lummis proposed a similar tax proposal that included a $300 exemption for small transactions.
· It also defended delaying taxes on "staking" rewards and "mining" during the amendment process of former President Donald Trump's "Big Beautiful Law." The exemption was to have an annual cap of $5000 on gains from cryptocurrencies to prevent abuse.
· However, these provisions did not make it into the final version of the law after failing to reach the required vote count. Some Democrats also opposed the proposal, arguing that it would lead to a loss of government revenue.
Current tax situation
Currently, the Internal Revenue Service (IRS) treats cryptocurrencies as property, which may subject them to capital gains taxes ranging from 10% to 37%. For long-term investors, the tax rates are relatively favorable, ranging from 0% to 20%. It is still unknown whether the latest tax proposals will be included in the cryptocurrency market structure bill.
The struggle over stablecoin yields
In parallel with tax discussions, the yield paid on stablecoins by cryptocurrency exchanges such as Gemini and Coinbase faces opposition from banking lobbyists.
· This party sees it as a threat to local banks, arguing that deposited capital will shift toward stablecoins in search of rewards ranging from 3% to 4%, instead of the yield of less than 1% in average checking accounts at banks.
· On the other hand, Gemini co-founder Tyler Winklevoss and other industry players are pushing back against what they see as "overreach" by banks that limits competition. Winklevoss responded to a collective letter from the industry sector to Congress defending the "GENIUS Act" stablecoin law: "We will not let them (the banks) get away with this. That’s why we signed this letter with over 125 other companies to defend the GENIUS Act as written."
Summary
· Congress has revived proposals for tax exemption for cryptocurrencies regarding small transactions using stablecoins.
· However, the battle against the rewards offered by exchanges on stablecoins continues.
