Tax Overhaul Could Favor Crypto Miners at Expense of Traders

The US House Ways and Means Committee is set to markup two crypto tax bills on September 16, which could significantly impact how miners, stakers, and traders are taxed.

H.R. 9175, the Tax Clarity for Mining and Staking Act, aims to let miners and stakers defer recognizing income on newly created tokens until they're actually sold, rather than at the moment they're received.

This change would alleviate pressure on validators to sell crypto to cover tax bills, as current IRS rules require them to count rewards as ordinary income based on fair market value the day they're received.

However, a companion bill, H.R. 9172, extends existing 'wash sale' and 'constructive sale' rules to digital assets, which could restrict traders from selling crypto at a loss and claiming the deduction within 30 days.