Lawmakers to Review Cryptocurrency Tax Bills Amid Loophole Concerns
US lawmakers are set to review two bills aimed at changing how cryptocurrency mining and trading income is taxed. The House Ways and Means Committee will discuss H.R. 9175, also known as the Tax Clarity for Mining and Staking Act, on September 16.
The bill would give miners and traders a choice: they could either report tokens obtained through mining or staking as ordinary income at fair market value, or defer recognition of income until the assets are sold. The goal is to close a tax loophole that has been exploited by US crypto traders for years.
Another bill, H.R. 9172, would extend 'wash sale' and 'constructive sale' rules to digital assets. This means investors could no longer claim a tax deduction by selling a security at a loss and immediately repurchasing the same asset.
The Treasury Department estimates that applying these rules to digital assets could generate $23.5 billion in revenue over 10 years.