Crypto Lobby Presses Congress to Pass Staking Tax Bill Without Changes

The Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber sent a joint letter to committee leaders Jason Smith and Richard Neal on June 21, urging them to move H.R. 9175 forward. The bill seeks to resolve the industry’s long-standing grievance with IRS guidance that mandates taxation on staking and mining rewards at the moment of receipt, regardless of whether the assets have been sold. Industry advocates characterize this as phantom income, forcing users to liquidate tokens prematurely to satisfy tax obligations.

Legislative friction has emerged over an amendment filed by Rep. Steven Horsford, which proposes a five-year cap on tax deferral. Industry leaders warn that this change would impose significant recordkeeping burdens and effectively undermine the bill's intent. Meanwhile, the American Bankers Association remains a vocal opponent, arguing that the legislation grants crypto rewards an unfair tax advantage over traditional savings products, dividends, and interest income. As the bill remains stalled in the House Ways and Means Committee, critics like the NYU Tax Law Center continue to caution that indefinite deferral risks creating a tax subsidy that could invite systemic abuse.