A bipartisan group of 18 U.S. House lawmakers is urging the IRS to review and update crypto staking tax rules before 2026. Led by Republican Mike Carey, the lawmakers highlighted the “burdensome” nature of current regulations, which tax stakers both when rewards are received and again upon sale.
Carey emphasized that adjusting the rules would ensure stakers are taxed based on actual economic gains, encouraging broader participation in blockchain networks. The lawmakers argue that current policies discourage Americans from staking their tokens, despite its importance for network security and U.S. leadership in digital asset innovation.
Separately, Representatives Max Miller and Steven Horsford introduced a draft to ease tax obligations for small stablecoin transactions and allow deferral of staking and mining rewards for up to five years. Both initiatives reflect a growing effort in Congress to modernize crypto taxation and support the industry’s growth while protecting investors from excessive tax burdens.