US Lawmakers Propose Tax Relief for Stablecoins and Crypto Staking Rewards

Bipartisan lawmakers in the US have introduced a draft proposal that could significantly reduce tax burdens for stablecoin users and crypto miners. Representatives Max Miller (R-Ohio) and Steven Horsford (D-Nev.) are spearheading legislation that would exempt small stablecoin transactions under $200 from capital gains reporting, effectively treating them like cash for everyday purchases.

The proposal includes a deferred taxation option for staking and mining rewards, allowing taxpayers to delay recognition of income for up to five years. This move addresses longstanding complaints about unclear crypto tax rules that have created compliance challenges for retail users and small businesses. Only regulated dollar-pegged stablecoins WOULD qualify for the small transaction exemption.

For crypto earners, the voluntary deferral mechanism could provide substantial cash FLOW advantages. Rewards would eventually be taxed as ordinary income at fair market value after the deferral period ends, rather than at the moment of receipt. The draft legislation represents one of the most concrete attempts to create sensible crypto tax policy in the US to date.