US House Crypto Tax Package Omits Key Mining Provision

A proposed crypto tax package in the US House of Representatives has omitted a key provision that would have allowed miners and stakers to defer taxation on rewards until tokens are sold. The Digital Asset Tax Certainty Act, H.R. 10357, was published alongside the committee's markup notice on Monday.

The bill retains some mining and staking provisions, including classifying income from blockchain validator activities as ordinary income, establishing where it is sourced inside or outside of the United States, and allowing qualifying investment trusts to stake digital assets without losing their trust status.

However, miners and stakers will still have to pay taxes on rewards when received or brought under their control, potentially before they are sold for cash. This could create liquidity problems for these individuals.