US Crypto Tax Bill Signals a Turning Point for Everyday Users
A new US crypto tax bill is sending shockwaves through Washington and the digital asset industry, promising meaningful tax relief for everyday crypto users. Introduced as a discussion draft by Representatives Max Miller (Ohio) and Steven Horsford (Nevada), the proposal seeks to modernize the US tax code for a world where crypto is increasingly used for payments, savings, and yield generation.
At its core, the draft aims to eliminate capital gains taxes on small stablecoin transactions and introduce a long-awaited tax deferral option for staking and mining rewards—two pain points that have long frustrated crypto users and developers alike.
US Crypto Tax Bill Removes Capital Gains on Small Stablecoin Payments
Under the proposal, individuals would no longer be required to report gains or losses on stablecoin transactions of up to $200 per payment, provided strict conditions are met.
What qualifies for the stablecoin tax exemption?
To qualify under the US crypto tax bill, the stablecoin must:
- Be issued by a permitted issuer under the GENIUS Act
- Be pegged to the US dollar
- Maintain a tight trading range around $1
This provision directly targets routine consumer payments—such as buying coffee or paying subscriptions—where tracking tiny gains has been impractical and discouraging.
To prevent abuse, the bill:
- Excludes brokers and dealers
- Disqualifies stablecoins that drift outside a narrow price band
- Preserves US Treasury authority to enforce anti-abuse and reporting rules
The intent is clear: make crypto usable for payments without turning every transaction into a tax headache.
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US Crypto Tax Bill Defers Taxes on Staking and Mining Rewards
The proposal also tackles one of the most controversial issues in crypto taxation: phantom income.
Currently, staking and mining rewards are often taxed the moment they are received—even if the user hasn’t sold them. The US crypto tax bill would allow taxpayers to defer income recognition for up to five years, or until the assets are disposed of.
The draft describes this as a middle ground between:
- Immediate taxation upon receipt, and
- Full deferral until sale
This change could significantly reduce cash-flow pressure on validators, miners, and long-term network participants, aligning tax policy with economic reality.
Broader Crypto Tax Reforms Included in the Proposal
Beyond payments and staking, the US crypto tax bill introduces several structural updates:
- Extends securities lending tax treatment to certain digital asset lending arrangements
- Applies wash sale rules to actively traded crypto assets
- Allows traders and dealers to opt for mark-to-market accounting for digital assets
Together, these measures aim to bring crypto taxation closer to established financial market standards.
Crypto Industry Pushes Back on Stablecoin Reward Restrictions
As lawmakers debate stablecoin rules, industry voices are growing louder. Recently, the Blockchain Association, backed by more than 125 crypto companies, urged the Senate Banking Committee to reconsider proposed restrictions on stablecoin rewards offered by third-party platforms.
The group warned that expanding bans beyond issuers could:
- Suppress innovation
- Favor large incumbents
- Reduce competition
They argued that crypto rewards function much like bank or credit card incentives—and banning them would put stablecoins at an unfair disadvantage.
Why This US Crypto Tax Bill Matters
If enacted, this US crypto tax bill could mark one of the most consumer-friendly shifts in US digital asset policy to date. By reducing friction for payments, easing staking taxes, and aligning crypto rules with traditional finance, lawmakers may finally be acknowledging that crypto is no longer experimental—it’s everyday financial infrastructure.
For millions of Americans using stablecoins and earning on-chain rewards, this proposal could mean one thing: crypto that actually works in the real world.
