Blockchain Association Proposes Tax Treatment Suggestions for Digital Assets to U.S. Senators
Summary:
The Blockchain Association has proposed tax treatment suggestions for digital assets in a letter to U.S. Senators. They emphasize the need for fair taxation and clarity on income from staking and mining crypto. The association also opposes a proposed mining excise tax and calls for legislation that treats digital assets on par with other assets.
The Blockchain Association, a U.S.-based cryptocurrency advocacy group, has proposed suggestions for lawmakers to consider in potential legislation regarding the tax treatment of digital assets. In a letter to U.S. Senators Ron Wyden and Mike Crapo, the association supported the Keep Innovation in America Act, a bill that aims to change reporting requirements for taxpayers involved in crypto transactions. They also emphasized the need for symmetry in the taxation of crypto and non-crypto assets and clarity on income earned from staking and mining crypto. The association's recommendations, which were submitted on the last day for responses, included a de minimis threshold to exclude certain crypto transactions from tax reporting requirements. They urged the committee to develop legislation that treats digital assets on par with other assets, rather than providing less-favorable tax treatment. In addition, the association opposed the digital asset mining excise tax proposed by the Biden administration, claiming it would hinder the growth of the crypto industry. This call for tax guidance comes after the IRS announced in July that staking rewards should be reported as gross income in the year they were received, setting new standards for U.S. taxpayers in 2024. The IRS primarily taxes the buying, selling, and exchange of crypto assets as capital gains and losses, with mining rewards subjected to the same requirements.
Published At
9/8/2023 7:03:29 PM
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