The Blockchain Association has submitted crypto tax proposals to Congress and met with House lawmakers currently working on a crypto tax bill. The lobby group released its policy positions on Tuesday, outlining specific changes to how digital assets are taxed.
The Association is advocating for a de minimis tax exemption on low-dollar crypto transactions. The group argues that tax reporting for negligible gains or losses from routine transactions imposes disproportionate costs on individuals and overwhelms tax administration without generating meaningful revenue. It also proposes that stablecoins be treated as cash for ordinary purchases.
Regarding investment rules, the Association supports extending wash-sale rules to digital assets. This change would limit investors’ ability to claim losses if they repurchase the same asset within a specified period. The group also argues that tax reporting should safeguard taxpayer privacy while enabling effective enforcement against illicit crypto activities.
For mining and staking, the Association proposes that rewards be treated as self-created property and taxed only when sold or disposed of, rather than upon receipt. This differs from current interpretations where rewards are often taxed as income immediately.
These efforts occur amidst broader legislative debate. Republican Senator Cynthia Lummis introduced a bill in July to tax-exempt some crypto transactions. However, Democratic Senator Elizabeth Warren has opposed the bill. In October, Warren argued that the de minimis exception would cost the United States $5.8 billion. She criticized a proposal that would exempt crypto transactions under $300 from income reporting, questioning why crypto should have different reporting standards than gold or stocks.
The Blockchain Association met with White House officials earlier this month to advance market structure legislation that includes provisions favorable to stablecoin rewards.
