Push to End Crypto Staking Double Taxation Gains Momentum in Washington
As cryptocurrency staking transitions from niche to mainstream, U.S. tax policy faces increasing scrutiny. Lawmakers argue that unclear and inconsistent rules could deter participation in blockchain networks and complicate compliance for millions of investors. A bipartisan group of 18 House representatives has urged the Internal Revenue Service to review staking tax guidance, citing double taxation and administrative burdens.
The lawmakers, led by Representative Mike Carey, emphasize that taxing staking rewards only at the point of sale WOULD better reflect actual economic gains, particularly in volatile markets. They warn that current policies may undermine the security of proof-of-stake blockchains by discouraging staking participation.
The timing of this push is strategic, with several tax provisions set to expire in 2026. Clarity on staking taxation is sought before broader tax debates dominate the legislative agenda.
