{"id":879845,"date":"2025-12-23T00:11:31","date_gmt":"2025-12-23T06:11:31","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/23\/us-lawmakers-urge-irs-to-review-crypto-staking-tax-rules-before-2026\/"},"modified":"2025-12-23T00:11:31","modified_gmt":"2025-12-23T06:11:31","slug":"us-lawmakers-urge-irs-to-review-crypto-staking-tax-rules-before-2026","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/12\/23\/us-lawmakers-urge-irs-to-review-crypto-staking-tax-rules-before-2026\/","title":{"rendered":"US Lawmakers Urge IRS to Review Crypto Staking Tax Rules Before 2026"},"content":{"rendered":"<div>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                    <\/p>\n<p>Crypto Journalist<\/p>\n<div>\n<p>Amin Ayan<\/p>\n<div>\n<div>\n<p><img decoding=\"async\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/04\/23090551\/ayan-150x150.jpg\" alt>\n                <\/p>\n<div>\n<div>\n<p>Crypto Journalist<\/p>\n<p><span>Amin Ayan<\/span><span class><img decoding=\"async\" src=\"https:\/\/cryptonews.com\/wp-content\/themes\/cryptonews\/images\/verification.svg\" alt=\"Verified\"><\/span>\n                    <\/p>\n<\/p><\/div>\n<div>\n<p>Part of the Team Since<\/p>\n<p>Apr 2025<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div>\n<p>About Author<\/p>\n<p>Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230;<\/p>\n<\/p><\/div>\n<\/div><\/div>\n<\/p><\/div>\n<div>\n<p>Last updated:\u00a0<\/p>\n<p><time datetime=\"2025-12-22T07:10:12+00:00\">December 22, 2025<\/time>\n        <\/p>\n<\/p><\/div>\n<\/div>\n<p><img loading=\"lazy\" width=\"1200\" height=\"673\" src=\"https:\/\/cimg.co\/wp-content\/uploads\/2025\/12\/22064425\/1766385865-image-1766385747029_optimized.jpg\" alt=\"US Lawmakers Urge IRS to Review Crypto Staking Tax Rules Before 2026\" decoding=\"async\"  ><\/p>\n<p>A bipartisan group of 18 US House lawmakers is calling on the Internal Revenue Service to revisit how crypto staking rewards are taxed, arguing that current rules place an unnecessary burden on investors and risk slowing participation in blockchain networks.<\/p>\n<div>\n<p><strong>Key Takeaways:<\/strong><\/p>\n<ul>\n<li><span>US lawmakers are urging the IRS to review crypto staking tax rules they say amount to double taxation.<\/span><\/li>\n<li><span>The group wants staking rewards taxed only when sold to better reflect real economic gains.<\/span><\/li>\n<li><span>Lawmakers warn current rules discourage staking and could weaken blockchain security and US leadership.<\/span><\/li>\n<\/ul>\n<\/div>\n<p>In <a href=\"https:\/\/carey.house.gov\/wp-content\/uploads\/2025\/12\/Rep.-Carey-IRS-Crypto-Tax-Staking-Letter.pdf\" target=\"_blank\">a letter sent Friday to IRS<\/a> acting commissioner Scott Bessent, the lawmakers, led by Republican Representative Mike Carey, asked the agency to review and update guidance they described as \u201cburdensome\u201d ahead of 2026.<\/p>\n<h2><span id=\"h-us-lawmakers-push-to-end-double-taxation-of-crypto-staking-rewards\">US Lawmakers Push to End \u201cDouble Taxation\u201d of Crypto Staking Rewards<\/span><\/h2>\n<p>The group said staking rewards should be taxed only when sold, rather than when they are received and again upon disposal.<\/p>\n<p>\u201cThis letter is simply requesting fair tax treatment for digital assets,\u201d Carey said, adding that ending what lawmakers view as double taxation of staking rewards would be \u201ca big step in the right direction.\u201d<\/p>\n<p>Under current interpretations, staking rewards are typically treated as taxable income at the moment they are received, based on their market value at that time.<\/p>\n<p>Lawmakers argue that this approach fails to reflect actual economic gains, particularly in volatile markets, and creates complex reporting obligations for everyday users.<\/p>\n<p>The letter contends that taxing rewards at the time of sale would better align with how capital gains are calculated across other asset classes.<\/p>\n<p>\u201cStakers are taxed based on a correct statement of their actual economic gain,\u201d the lawmakers wrote, describing the change as a way to reduce friction without weakening tax compliance.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"550\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>\ud83d\udca5BREAKING: <\/p>\n<p>\ud83c\uddfa\ud83c\uddf8 HOUSE LAWMAKERS INTRODUCE NEW CRYPTO TAX BILL:<\/p>\n<p>\u2022 STABLECOIN PAYMENTS UNDER $200 TAX-FREE<\/p>\n<p>\u2022 STAKING &#038; MINING TAX DEFERRAL UP TO 5 YEARS<\/p>\n<p>\u2022 CRYPTO TAX RULES ALIGNED WITH SECURITIES LAW<\/p>\n<p>\u2022 WASH TRADING LOOPHOLES TARGETED <a href=\"https:\/\/t.co\/N4z9ncdvWR\" target=\"_blank\">pic.twitter.com\/N4z9ncdvWR<\/a><\/p>\n<\/div>\n<p>\u2014 STEPH IS CRYPTO (@Steph_iscrypto) <a href=\"https:\/\/twitter.com\/Steph_iscrypto\/status\/2002629572836413564?ref_src=twsrc%5Etfw\" target=\"_blank\">December 21, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The group also warned that the existing framework discourages participation in staking, which plays a central role in securing proof-of-stake blockchains.<\/p>\n<p>\u201cMillions of Americans own tokens on these networks,\u201d the letter said. \u201cNetwork security \u2014 and American leadership \u2014 requires those taxpayers to stake those tokens, but today the administrative burden and prospect of over taxation discourages that participation.\u201d<\/p>\n<p>Lawmakers asked the IRS whether any administrative barriers stand in the way of updating the guidance before the end of the year, framing the request as consistent with broader efforts to strengthen US leadership in digital asset innovation.<\/p>\n<h2><span id=\"h-us-lawmakers-propose-tax-relief-for-small-stablecoin-and-staking-transactions\">US Lawmakers Propose Tax Relief for Small Stablecoin and Staking Transactions<\/span><\/h2>\n<p>Before this, Representatives Max Miller and Steven Horsford <a href=\"https:\/\/cryptonews.com\/news\/us-house-draft-proposes-tax-safe-harbor-for-some-stablecoin-transactions\/\">introduced a separate discussion draft<\/a> aimed at easing crypto tax obligations, including an exemption for small stablecoin transactions and new options for staking and mining rewards.<\/p>\n<p>Rather than fully overhauling staking taxes, that proposal would allow taxpayers to defer income recognition on staking or mining rewards for up to five years.<\/p>\n<p>Supporters say the measure could provide relief while lawmakers and regulators work toward longer-term clarity.<\/p>\n<p>The bill also extends several securities tax rules to digital assets.<\/p>\n<p>It would apply wash sale restrictions to cryptocurrencies, limit strategies designed to lock in gains while delaying taxes, and extend securities lending treatment to qualifying crypto loans involving fungible, liquid assets. NFTs and illiquid tokens would be excluded.<\/p>\n<p>\n                                    <a href=\"https:\/\/news.google.com\/publications\/CAAqKQgKIiNDQklTRkFnTWFoQUtEbU55ZVhCMGIyNWxkM011WTI5dEtBQVAB?ceid=US:en&#038;oc=3\" target=\"_blank\"><\/p>\n<p>                            <svg width=\"20\" height=\"16\" viewBox=\"0 0 20 16\" fill=\"none\">\n                            <path d=\"M19.6 5.36C19.6 5.48 19.6 5.66 19.54 5.78L17.2 12.8V5.6C17.2 4.94 16.66 4.4 16 4.4H12.82L12.52 3.8L11.86 2.36L15.34 3.32L18.58 4.16C19.18 4.28 19.6 4.82 19.6 5.36Z\" fill=\"#FF4131\" \/>\n                            <path d=\"M15.4 0.799997V3.26L11.92 2.3L11.74 1.88C11.44 1.28 10.72 0.979997 10.12 1.22L4.59998 3.38V0.799997C4.59998 0.499997 4.89998 0.199997 5.19998 0.199997H14.8C15.1 0.199997 15.4 0.499997 15.4 0.799997Z\" fill=\"#03A846\" \/>\n                            <path d=\"M12.82 4.4H4.00002C3.34002 4.4 2.80002 4.94 2.80002 5.6V11.42L0.520024 6.5C0.460024 6.26 0.400024 6.08 0.400024 5.9V5.84C0.400024 5.3 0.700024 4.82 1.24002 4.64L4.60002 3.32L10.06 1.22C10.72 0.979997 11.44 1.28 11.68 1.88L11.86 2.3L12.52 3.74L12.82 4.4Z\" fill=\"#FDBD04\" \/>\n                            <path d=\"M17.2 5.59999V14.6C17.2 15.26 16.66 15.8 16 15.8H4.00005C3.34005 15.8 2.80005 15.26 2.80005 14.6V5.59999C2.80005 4.93999 3.34005 4.39999 4.00005 4.39999H16C16.66 4.39999 17.2 4.93999 17.2 5.59999ZM9.40005 9.79999H7.00005V11H7.90005C7.60005 11.36 7.18005 11.6 6.70005 11.6C5.86005 11.6 5.20005 10.94 5.20005 10.1C5.20005 9.25999 5.86005 8.59999 6.70005 8.59999C7.12005 8.59999 7.48005 8.77999 7.78005 9.01999L8.62005 8.17999C8.14005 7.69999 7.48005 7.39999 6.70005 7.39999C5.20005 7.39999 4.00005 8.59999 4.00005 10.1C4.00005 11.6 5.20005 12.8 6.70005 12.8C7.90005 12.8 8.86005 12.08 9.22005 11C9.34005 10.7 9.40005 10.4 9.40005 10.1C9.40005 9.97999 9.40005 9.91999 9.40005 9.79999ZM14.8 7.39999H10.6V8.59999H14.8V7.39999ZM16 9.79999H10.6V11H16V9.79999ZM14.8 12.2H10.6V13.4H14.8V12.2Z\" fill=\"#0284FE\" \/>\n                            <\/svg><br \/>\n                                                                    Follow us on Google News                                    <\/a>\n                                <\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/cryptonews.com\/news\/us-lawmakers-urge-irs-to-review-crypto-staking-tax-rules-before-2026\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Qiana Culton<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto Journalist Amin Ayan Crypto Journalist Amin Ayan Part of the Team Since Apr 2025 About Author Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24\/7 Wall St. He has&#8230; Last updated:\u00a0 December 22, 2025 A<\/p>\n","protected":false},"author":1,"featured_media":879846,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4151,661],"tags":[],"class_list":{"0":"post-879845","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-lawmakers","8":"category-review"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/879845","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=879845"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/879845\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/879846"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=879845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=879845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=879845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}