Blockchain Association Calls for Urgent Crypto Tax Reforms in the US

The Blockchain Association recently made headlines by advocating for significant changes to U.S. cryptocurrency tax regulations in discussions with the House Ways and Means Committee offices. Pushing forward the argument that current laws are outdated, the association is urging Congress to reconsider how staking rewards are taxed, suggesting taxation should occur only when the rewards are sold, rather than when they're received. This change would mitigate liquidity and valuation concerns for crypto holders. Additionally, the Association seeks privacy-enhancing reporting rules and clear definitions that exclude non-custodial platforms from being classified as brokers. They're also advocating for small digital asset transactions to be exempt from taxation and for stablecoins to be treated similarly to cash for tax purposes, aiming to simplify tax reporting and strengthen U.S. competitiveness in the blockchain space. The call for modernization echoes Senator Cynthia Lummis's 2022 proposal, which faced opposition from other lawmakers and highlighted the ongoing debate surrounding crypto tax legislation.