House Lawmakers Aim to Simplify Crypto Taxation for Small Stablecoin Transactions

Key Takeaways

• Proposed exemption for capital gains taxes on stablecoin transactions under $200.
• Option to defer taxes on staking and mining rewards for up to five years.

A bipartisan effort by House representatives aims to reform crypto taxation, potentially easing the financial burden on small stablecoin transactions. The proposal, crafted by Representatives Max Miller and Steven Horsford, targets transactions involving regulated, dollar-pegged stablecoins, suggesting they should be free from capital gains taxes if under $200. Other crypto trades will remain under current taxation rules, according to Bloomberg.
The draft also addresses the contentious issue of taxing staking and mining rewards. Taxpayers could defer these taxes for a maximum of five years, with the rewards eventually taxed as income based on their fair market value. Additionally, the proposal suggests incorporating digital assets into securities-related tax rules, allowing eligible traders to apply mark-to-market accounting, and extending wash-sale restrictions to crypto assets.