Bipartisan Bill Aims To Ease Crypto Tax Rules For Staking And Stablecoins
A new bipartisan bill in the U.S. House aims to simplify crypto taxation. The draft, introduced by Representative French Hill (R-Arkansas), proposes key changes to align digital asset rules with traditional financial markets. If passed, it could bring more clarity to how cryptocurrencies are taxed in the country.
The legislation introduces several major adjustments. One key measure exempts stablecoin transactions under $200 from capital gains tax. This move targets everyday users who often face tax burdens on small purchases.
The bill also applies mark-to-market accounting to cryptocurrencies, treating them like stocks or commodities. This change would require traders to report unrealised gains or losses annually, mirroring existing rules for securities. For international investors, the draft extends capital gains tax exemptions to include digital assets. Another provision allows a 5-year deferral on staking and mining rewards, taxing them as ordinary income only after that period. Additionally, the proposal expands wash sale rules to crypto, closing loopholes that allowed tax loss harvesting. Representative Hill’s draft seeks to reduce confusion in crypto taxation. By treating digital assets more like traditional investments, the bill aims to create a fairer and more predictable system.
The proposed changes would reshape how cryptocurrencies are taxed in the U.S. If approved, the bill could reduce compliance burdens for small transactions while tightening rules on tax avoidance. The outcome may influence both domestic traders and international investors dealing with digital assets.
