Two bipartisan US lawmakers have introduced legislation clarifying that staking rewards should only be taxed at the time of sale to avoid double taxation.
Representative Wiley Nickel, DN.C. Georgia Rep. Drew Ferguson filed a bill Tuesday called the Providing Tax Clarity for Digital Assets Act.
“The United States’ digital asset compensation processing is overly complex, leading to investor confusion, double taxation, and the relocation of American companies overseas,” Ferguson said. name. “The Providing Tax Clarity for Digital Assets Act will provide the tax clarity our industry desperately needs, establish U.S. leadership in digital asset tax treatment, and encourage American innovation and business.”
This is as announced by the National Tax Service. control Last year, cryptocurrency investors who received rewards through staking services were required to include the value of those rewards as part of their gross income.
Cryptocurrency industry reaction
The new law requires taxes on block rewards in proof-of-work or proof-of-stake networks not to apply when the block rewards are earned, but instead when they are used or sold, Coin Center said. post On Wednesday.
“This simple policy will address key issues with how cryptocurrencies are taxed today and put the technology on a level playing field,” the center said.
The Proof of Stake Alliance said the bill was a “common-sense clarification of existing law.” post On Tuesday.
“This bill promotes tax fairness and compliance by ensuring that block rewards are taxed only upon sale or exchange, rather than twice, once upon acquisition and upon disposition,” POSA said.
Rep. Nickel supports cryptocurrency Advance Last year, a digital asset bill called the Financial Innovation and Technology Act was proposed. Both he and Ferguson announced that they were retiring and would not seek re-election.
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About the author
Sarah is a reporter for The Block covering policy, regulation and legal events. She was previously a reporter writing about securities regulation at CQ Legal, where she first began her reporting on cryptocurrencies. She Sarah has also written for The Bond Buyer and American Banker, among other financial publications. She graduated from the University of Missouri with a degree in Print and Digital Journalism. Sarah lives in Washington, DC and she is an avid coffee lover. You can follow her on Twitter @ForTheWynn.