This article was first published on The Bit Journal. Leading crypto advocacy groups are pushing lawmakers to move forward on legislation that could greatly impact the future of crypto taxatio
This article was first published on The Bit Journal. Leading crypto advocacy groups are pushing lawmakers to move forward on legislation that could greatly impact the future of crypto taxation in the United States. The Blockchain Association, Crypto Council for Innovation, and The Digital Chamber sent a joint letter to congressional leaders on June 21 urging them to approve H.R. 9175 as written since it would finally give clarity for crypto miners and stakers.
The demand was made by the House tax committee leadership, Jason Smith and Richard Neal, while there is an ongoing debate on the fate of crypto taxes. Industry representatives contend that current tax rules create unnecessary burdens for participants who secure blockchain networks through mining and staking activities.
The issue lies in the question of when blockchain rewards should be taxed. Any existing guidance also generally considers “mining and staking” rewards to be taxable income, at the time of receipt, as determined by the market value at that time. However, critics of the policy say that it may compel taxpayers to pay taxes on property that they haven’t sold, which the crypto industry frequently refers to as “phantom income.”
H.R. 9175 aims to address that concern by allowing taxpayers greater flexibility. The proposal would give people the option of recognizing income when the rewards are received or taxing them when the assets are sold or otherwise disposed of.
Tax supporters argue that this method carries out the goal of “preserving tax obligations” without forcing participants to sell assets just to pay off tax bills. The measure would also make the cryptocurrency taxation system more modern, according to advocates, while allowing the government to collect taxes.
The crypto groups highlighted the larger implications of the blockchain infrastructure, stating that the value of digital assets in both proof-of-work and proof-of-stake networks combined is valued at over $1.7 trillion. They said that clear and predictable crypto taxation rules would increase Americans capacity to join in the protection of these networks here at home.
The bill has been endorsed by industry, but it has some opposition. Representative Horsford (R-39) recently introduced a proposed amendment that would limit tax deferral for five years. Crypto Council for Innovation CEO Ji Hun Kim criticized the bill saying it would be a step that would reduce the benefit of the bill and do little to yield more tax revenue.
The advocacy groups voiced the same concerns, arguing that a time-based restriction would make compliance more expensive and cause complex recordkeeping requirements in multiple wallets and accounts. According to them, the amendment would bring back many of the issues that the bill aims to address and make crypto taxation more complicated for the average user.
For years, CCI has argued for proper taxation of staking rewards. Rep. Horsford’s amendment would unfortunately break H.R. 9175, replacing it with a 5-year forced-sale clock on staking and mining rewards that JCT says raises negligible revenue. We greatly appreciate his… https://t.co/Lmt4OfxfxI
— Ji Kim (@_jikim) June 22, 2026
In the meantime, the American Bankers Association has expressed strong objections to the measure. The group believes that offering unequal tax treatment to crypto rewards compared to bank interest, dividends, and other types of income would result in an uneven playing field. There is also a risk that digital assets will be competitive against the traditional savings product in the eyes of critics, because of deferred taxation.
The bill is awaiting further action in the House Ways and Means Committee, and is now facing a debate in the legislative body whether to focus on innovation and clarity in the crypto industry or retain uniformity across the spectrum of investments. The result may have long-lasting implications for digital asset tax and regulatory policy in the United States for years to come.
The question of crypto taxation is now up to Congress as the lawmakers consider the competing demands from industry groups and financial institutions. Advocates for H.R. 9175 are pushing for its speedy passage, while detractors say it could create a regulatory imbalance. It is likely to impact digital asset tax policy and compliance across the country in the long term.
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Crypto taxation: Tax rules on cryptocurrency income and gains.
H.R. 9175: U.S. bill proposing flexible crypto tax timing.
Mining: Verifying blockchain transactions for rewards.
Staking: Locking crypto to earn network rewards.
IRS: U.S. agency handling tax collection.
It concerns when mining and staking rewards should be taxed.
It allows flexible timing for taxing crypto rewards.
Tax on crypto not yet sold for cash.
Banking groups and some lawmakers over fairness concerns.
ReferencesDisclaimerThe article is purely informational and it is not a financial, investment, or a trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, the readers are to conduct personal research and seek the advice of a qualified financial expert.
Read More:Crypto Taxation Bill H.R. 9175 Gains Support From Leading Industry Groups">Crypto Taxation Bill H.R. 9175 Gains Support From Leading Industry Groups
