US House crypto tax package omits mining, staking reward deferral

The U.S. House Ways and Means Committee is set to consider a 114‑page crypto tax package that revises the tax treatment of several digital‑asset activities but does not include a provision allowing miners and stakers to defer tax on rewards until the tokens are sold.

Key provisions of the bill

• Classifies income from blockchain validator activities as ordinary income and determines whether it is sourced inside or outside the United States.
• Allows qualifying investment trusts to stake digital assets without losing trust status.
• Prevents taxpayers from recognizing gains or losses when crypto is used to pay network or transaction fees up to $10.
• Provides special tax treatment for qualifying U.S. dollar‑denominated stablecoins.
• Allows qualifying digital‑asset loans to occur without being treated as taxable sales.
• Extends wash‑sale and constructive‑sale rules to crypto and offers simplified accounting for widely traded crypto assets.
• Establishes a voluntary disclosure program for taxpayers to correct prior digital‑asset tax violations.

What is missing

The package does not contain the reward‑timing provision from Representative Mike Carey’s Tax Clarity for Mining and Staking Act, which would have let taxpayers choose to defer taxation of newly created tokens until they are sold. Without this provision, mining and staking rewards remain taxable when received or when the recipient gains control, potentially creating liquidity challenges.

Context and industry response

The bill is being considered as the Senate debates the CLARITY Act, which would clarify the division of oversight between the SEC and CFTC. Industry groups—including the Blockchain Association, Crypto Council for Innovation, and Digital Chamber—have urged Congress to adopt Carey’s deferral provision, warning that immediate taxation of rewards can strain miners and stakers.