House Republicans Urge IRS to Overhaul Crypto Staking Tax Rules—Before 2025 Ends
Nineteen Republican House members are urging the Trump administration to reverse a 2023 IRS rule that taxes crypto staking rewards as income upon receipt. They argue staking rewards, generated by users helping secure proof-of-stake blockchain networks, should be treated as new capital property and only taxed when sold, not immediately. Advocates say the current rule deters participation and threatens America’s position as a global crypto leader. The Treasury Department recently allowed Wall Street crypto products to offer staking rewards, boosting interest in the sector. The Trump administration has indicated potential willingness to revise the IRS stance for individual investors, but has not acted yet. Lawmakers and industry groups are pushing for this change before the 2025 tax year rules are finalized, aiming to ease the passage of forthcoming crypto tax legislation and allow more flexibility for future regulation.
