Blockchain Association pushes Congress for standalone crypto tax fix
Regulation & Gov ·
The trade group is asking lawmakers to move on digital asset tax policy even as a larger crypto bill remains stalled.
The Blockchain Association has called on Congressional leaders to advance bipartisan rules clarifying how digital assets are taxed, pressing the issue separately from broader crypto market-structure legislation that has yet to pass, according to The Block. The appeal comes as the wider legislative package the industry has lobbied for continues to face delays on Capitol Hill.
At issue is the patchwork of guidance, rather than statute, that currently governs how US taxpayers calculate gains, report staking income, and handle broker reporting obligations for digital assets. The IRS has treated virtual currency as property since 2014, with short-term gains taxed at ordinary income rates and long-term holdings eligible for lower rates depending on income, while staking and mining rewards are taxed as income upon receipt. Broker reporting requirements expanded under 2021 infrastructure legislation have added further ambiguity that industry groups say needs congressional clarification rather than piecemeal IRS rulings.
The push lands amid a broader wave of legislative activity touching crypto taxation. The House Ways and Means Committee has been weighing multiple draft proposals addressing crypto tax treatment, and a revised version of the PARITY Act has introduced provisions covering wash-sale rules for digital assets, a safe harbor for stablecoins, and deferral of tax on staking rewards. Separate proposals, including an $80,000 exemption floated to ease filing burdens for small holders, reflect continued pressure to simplify compliance for individual taxpayers.
The timing also coincides with tax-driven market dynamics: Bitcoin has faced the prospect of as much as $2.8 billion in tax-related selling pressure as an April 15 filing deadline approached, adding strain to already fragile trading conditions. Internationally, Japan has moved to reclassify crypto as a financial product, cutting its tax rate from 55% to a flat 20%, while South Korea has outlined plans to tax crypto gains above $1,740 starting January 1, 2027, after years of delay. Those moves underscore how other jurisdictions are codifying crypto tax treatment while the US framework remains largely rooted in administrative guidance.
What remains unclear is whether Congress will act on a narrower tax-focused measure independent of the stalled broader crypto bill, or whether tax reform continues to be tied to the fate of that larger legislative package. The outcome will determine whether US digital asset holders see statutory clarity soon or continue operating under IRS notices and revenue rulings issued piecemeal since 2014.