Blockchain Association urges Congress to modernize US crypto tax rules

The Blockchain Association submitted a set of Digital Asset Tax Principles to House Ways and Means Committee offices calling for a comprehensive update to U.S. crypto tax policy. Key proposals: treat stablecoins as cash for tax purposes, introduce a de minimis exemption for small crypto transactions (aligned with prior $300 proposals), tax staking and mining rewards as capital gains only when sold (not upon receipt), expand wash-sale rules to digital assets, clarify that developers and non-custodial platforms are not brokers, implement privacy-preserving broker reporting, and create a statutory safe harbor for foreign traders using U.S. exchanges. The group argues taxing staking or mining “upon creation” causes liquidity and valuation problems for holders and retail users and that clearer, broker-based reporting can reduce compliance burdens while allowing IRS focus on illicit activity. The push echoes earlier legislative moves (including Sen. Cynthia Lummis’s de minimis proposal) and has drawn criticism from some lawmakers concerned about revenue loss. For traders: the proposals could lower tax-reporting friction, increase retail stablecoin usage in payments, change tax timing for staking/mining positions, and affect wash-sale loss harvesting strategies if adopted. Expect these proposals to inform policy debates into 2026; any enacted changes would alter tax planning, custody and reporting practices and could influence short-term trading behavior around staking and stablecoin use.