#USCryptoStakingTaxReview The #USCryptoStakingTaxReview has become a central focus for the digital asset industry in late 2025. This movement, gaining momentum in December 2025, centers on a bipartisan push led by lawmakers like Rep. Mike Carey to reform how the IRS treats staking rewards.
The Core Conflict
Currently, under Revenue Ruling 2023-14, the IRS treats staking rewards as taxable income the moment a user gains "dominion and control" over them. This means stakers are taxed on the fair market value of tokens as they are earned, creating a massive administrative burden and "phantom tax" liabilities if the token price drops before they sell.
Recent 2025 Developments
Bipartisan Pressure: In December 2025, a group of 18 lawmakers urged the Treasury to treat staking rewards as newly created property (similar to a farmer growing crops) rather than immediate income. Under this proposed "Safe Harbor" framework, taxes would only be triggered upon the sale of the assets.
Administrative Shifts: The Trump administration’s 2025 report, Strengthening American Leadership in Digital Financial Technology, specifically recommended a review of this guidance to prevent "double taxation" and encourage network security.
Institutional Impact: Recent IRS guidance (Rev. Proc. 2025-31) provided a safe harbor for trusts engaging in staking, allowing them to stake without losing their tax classification—a win for institutional adoption.
The outcome of this review will likely determine if the U.S. remains a competitive hub for PoS (Proof of Stake) networks or if capital migrates to more tax-friendly jurisdictions.
Would you like me to generate a simplified table comparing the current tax rules versus the proposed changes?