Key facts
- Association represents over 100 members.
- 67 million Americans hold or use digital assets.
- Proposals include exempting smaller crypto transactions and treating stablecoins like cash.
- Calls for restricting broker reporting to custodial entities.
- Wants mining and staking rewards taxed at disposal.
- Advocates for tax-free transfers between wallets of the same owner.
The Blockchain Association has urged the United States Congress to overhaul cryptocurrency tax rules, aiming for more transparent reporting and equitable tax treatment for digital assets. Representing over 100 members, the association highlighted that existing tax regulations create significant compliance burdens for the 67 million Americans who hold or use digital assets. The group presented a set of principles for digital asset taxation, including exempting smaller transactions, treating stablecoins like cash, and restricting broker reporting requirements to custodial entities. They also called for cryptocurrency mining and staking rewards to be recognized as self-generated property, taxed at the time of disposal, and sourced from the taxpayer's location. The association further proposed tax-free transfers between wallets of the same owner, the application of Wash Sale rules to cryptocurrencies, and safe harbor protections for foreign investors. Additionally, they advocated for allowing cryptocurrency staking within various investment vehicles and for optional mark-to-market accounting for digital assets.