Crypto groups urge Congress to keep mining, staking tax bill

A coalition of crypto advocacy groups urged Congress to approve the Tax Clarity for Mining and Staking Act without changes, saying the bill would clarify tax treatment for rewards from cryptocurrency mining and staking. The Blockchain Association, the Crypto Council for Innovation and The Digital Chamber sent a letter over the weekend to House Ways and Means Committee Chair Jason Smith and top Democrat Richard Neal.

Under the bill, miners and stakers could defer tax on rewards until the underlying tokens are sold. The proposal would also create an elective process allowing taxpayers to choose between paying tax when rewards are received or when they are sold. Supporters say deferral aligns tax liability with when value is realized rather than when tokens are minted or distributed.

The House Ways and Means Committee held a hearing on several cryptocurrency measures earlier this month. The tax bill has not cleared the committee and could be amended as lawmakers consider revisions.

In their letter, the groups warned that reopening the terms of the bill could revive the issues the legislation aims to resolve and stall a bipartisan outcome. Cody Carbone, chief executive of The Digital Chamber, wrote: “The tax code currently fails to account for how miners and stakers create and interact with assets, and this bill provides much-needed clarity, protects U.S. competitiveness, and preserves a bipartisan compromise already established by that Congress.”

The American Bankers Association criticized the bill, saying it shows “clear favoritism for cryptocurrencies over other asset classes” and warned that allowing long tax deferral could draw deposits from traditional banks. The Crypto Council for Innovation disputed that claim.

The industry groups said unclear tax rules create operational and compliance challenges for firms and individual participants. They warned taxing rewards at creation could force some taxpayers to pay tax on illiquid holdings and complicate accounting for miners, validators and staking service providers. Opponents have questioned how long taxes could be deferred and whether similar treatment should apply to other asset types.

The coalition asked the committee to approve the bill as written to provide certainty to market participants. The measure's future will depend on committee deliberations and any amendments lawmakers decide to adopt.