Blockchain Association Presents Crypto Tax Proposals

The US crypto lobby group Blockchain Association presented crypto tax policies to Congress and met with lawmakers in the House of Representatives to shape the sector’s priority policy goals. Among the proposals are treating stablecoins like cash in ordinary purchases and a de minimis tax exemption for low-value crypto transactions. The group argues that reporting trivial gains or losses from routine transactions imposes disproportionate costs on individuals and burdens tax administration. They also support applying wash-sale rules to digital assets, allowing investors to claim losses even if they repurchase the same crypto.

Source: Blockchain Association

Details of Blockchain Association’s Stablecoin Tax Proposal

Stablecoins like USDT or USDC are becoming usable as cash equivalents in daily spending. The proposal aims to exempt these assets from capital gains tax in retail purchases. This will encourage the stability of stablecoins with tax relief, unlike volatile assets such as BTC detailed analysis.

Effects of De Minimis Exemption in Crypto Transactions

The reporting exemption for low-value (e.g., under 300 USD) crypto transactions will reduce the administrative burden on individual investors. Blockchain Association states that this will direct the tax agency to focus on illegal activities. Technically, tracking micro-transactions on the blockchain overloads existing IRS systems.

Importance of Wash-Sale Rules for BTC Investors

The wash-sale rule prevents investors who repurchase the same asset within 30 days from deferring losses. Applying it to crypto will improve tax planning for those trading BTC futures. Experts predict this change will accelerate portfolio rotation in major coins like BTC.

Mining and Staking Taxation Proposals

Taxing mining and staking rewards as capital gains will clarify the moment of income realization. The organization proposes broker-based systems that protect privacy in reporting. This is critical for ETH stakers on PoS networks; BTC miners will better balance Proof-of-Work costs.

Tax Dispute Between Senator Lummis and Warren

Republican Senator Cynthia Lummis’s tax exemption bill was criticized by Democrat Elizabeth Warren. Warren argues that de minimis will lead to a 5.8 billion USD tax loss. This month’s White House meetings could accelerate market structure legislation. The sector awaits regulations to clarify in 2026.

These proposals strike a balance between integrating the crypto ecosystem into traditional finance while protecting individual freedoms.