Two representatives of the US House of Representatives are drafting a specific tax framework for cryptocurrencies, focusing on tax protection for certain stablecoin transactions and tax deferral on rewards earned through blockchain transaction verification.
The crypto industry has long demanded legal clarity regarding the taxation of digital assets, although comprehensive legislation to regulate them is still under discussion in Congress.
Congressmen Max Miller (Republican) and Steven Horsford (Democrat) have introduced an initial draft that aims to align crypto taxes with the traditional securities tax framework.
The draft proposes a capital gains tax exemption for transactions of stablecoins pegged to the US dollar and valued at less than $200, but does not cover trading in other cryptocurrencies.
The proposal also introduces the concept of a ‘safe harbor’ for rewards from staking and mining activities. Under the framework, taxpayers are given the option to defer taxes on the rewards for up to five years, before they are taxed based on current market value.
According to Miller, the US tax code has failed to keep pace with modern financial technology, and this bipartisan bill is expected to bring clarity and fairness to the taxation of digital assets.
Horsford, for his part, expressed hope that the relevant committees can work together to finalize this important regulation.
The framework is being developed separately from Congress' efforts to enact more comprehensive crypto legislation, with an initial focus on stablecoins following the previous passage of related legislation.
The proposal is still in its early stages and requires further discussion, but it is seen as an important first step towards a clearer and more orderly crypto tax system in the United States.
