US Legislators Offer Stablecoin Tax Breaks and Reward Delays
US lawmakers have introduced a discussion bill that would ease the tax burden on everyday crypto users by exempting small Storticoin transactions from capital gains tax and providing a new transfer option for stock and mining rewards.
The proposal, by Reps. Max Miller of Ohio and Steven Horsford of Nevada, seeks to amend the Internal Revenue Code to reflect the growing use of digital assets in payments. According to the draft, it is intended to “remove the recognition of the low value generated by the use of payment stablecoins from the regular customer payments”.
Under the draft, users are not required to recognize gains or losses on stablecoin transactions of up to $200, as long as the asset is issued by an authorized issuer under the GENIUS Act, pegged to the US dollar and has a strict trading range of around $1.
The bill includes safeguards to prevent abuse. If a stable coin is traded outside a narrow price band, the exemption will not apply, and brokers or dealers will be excluded from the benefit. Treasury retains authority to issue anti-abuse regulations and reporting requirements.
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The US bill imposes a tax on crypto staking rewards
In addition to fees, the proposal addresses long-standing concerns around “discretionary income” from stocks and mining. Taxpayers are allowed to elect to defer income recognition on stock or mineral awards for up to five years rather than paying tax immediately upon receipt.
“This provision is intended to reflect the necessary compromise between immediate taxation and total transgression of rule and regulation,” the draft says.
The draft also extends existing securities lending tax treatment to certain digital asset lending arrangements, applies wash sale rules to actively traded crypto assets, and allows traders and dealers to choose mark-to-market accounting for digital assets.
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Crypto groups are urging the Senate to reconsider the ban on stablecoin rewards
Last week, the Blockchain Association sent a letter to the US Senate Banking Committee, signed by 125 crypto companies and industry groups, against efforts to extend the limits on stablecoin rewards on third-party platforms.
The group argued that expanding the limits of the GENIUS Act beyond Stalkcoin issuers would stifle innovation and increase market concentration in favor of large incumbents. The letter compared crypto rewards to incentives offered by banks and credit card companies, warning that denying similar features to stablecoins would undermine fair competition.
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