US Lawmakers Propose Stablecoin Tax Break, Staking Reward Deferral
A new draft bill in the US Congress aims to reduce the tax burden on crypto users by exempting small stablecoin transactions—up to $200—from capital gains taxes, provided the stablecoin is tightly pegged to the US dollar and meets certain regulatory criteria. The exemption is designed for routine consumer payments and excludes cases where the stablecoin trades outside a narrow price range or involves brokers and dealers. The bill also proposes letting taxpayers defer income recognition on staking and mining rewards for up to five years, addressing concerns over immediate taxation on “phantom income.” Additional provisions include securities lending tax treatment for certain digital asset lending, the application of wash sale rules to actively traded crypto, and an option for traders and dealers to use mark-to-market accounting. The Blockchain Association and other industry groups have expressed concern over further restrictions on stablecoin rewards, arguing they would stifle innovation and competition.
