#USCryptoStakingTaxReview Post with hashtag #USCryptoStakingTaxReview:

U.S. lawmakers and tax authorities are intensifying scrutiny of how cryptocurrency staking rewards are treated under the tax code, with a bipartisan group of 18 House members urging the Internal Revenue Service (IRS) to revise its current rules before the 2026 tax year begins. They argue that the existing framework — which taxes staking rewards as income when received and then again as capital gains upon sale — results in double taxation that discourages participation in proof-of-stake networks and adds unnecessary administrative burden.

In a letter led by Rep. Mike Carey, lawmakers propose that rewards instead be taxed at the point of sale, better aligning taxes with actual economic gains. Separate legislative drafts, such as the Digital Asset PARITY Act, would provide additional relief by allowing up to five years of deferral on staking and mining tax recognition and exempting small stablecoin transactions from capital gains tax, reflecting broader calls to modernize crypto taxation.

Meanwhile, the IRS’s Revenue Procedure 2025-31 has already created a safe harbor that lets certain crypto investment trusts stake assets without jeopardizing their tax status, easing institutional participation. As debate continues, the focus remains on balancing investor incentives, tax fairness, and regulatory clarity ahead of the 2026 filing season.