Crypto Tax Bill Fails Miners, Leaves Them Taxed on Unsold Tokens

The U.S. House Ways and Means Committee is set to consider the Digital Asset Tax Certainty Act, a 114-page legislation aimed at clarifying cryptocurrency tax rules in the country.

However, a proposal from Representative Mike Carey's Tax Clarity for Mining and Staking Act that would have allowed miners and stakers to defer income recognition until tokens are sold has been left out of the bill.

This omission is significant because current tax rules can create a mismatch between when crypto income is taxed and when the recipient actually receives cash from selling the assets.

The bill still includes several other significant crypto tax changes, including extending wash sale and constructive sale rules to digital assets, creating a $10 de minimis exemption for certain digital asset transactions involving network or transaction fees, and addressing qualifying U.S. dollar stablecoins and certain digital asset loans.