A coalition of leading cryptocurrency industry organizations has urged the U.S. House Ways and Means Committee to approve the Tax Clarity for Mining and Staking Act (H.R. 9175) without changes, arguing the legislation would resolve years of uncertainty surrounding the taxation of blockchain mining and staking rewards.
In a joint letter sent to Committee Chairman Jason Smith and Ranking Member Richard Neal on Sunday, the groups said the bill strikes a balance between ensuring tax revenue and avoiding what they describe as impractical tax treatment for participants securing blockchain networks.
The letter was signed by Blockchain Association CEO Summer Mersinger, Crypto Council for Innovation CEO Ji Hun Kim, and Digital Chamber CEO Cody Carbone, among others.
Why the industry opposes current IRS rules
The organizations argue that current IRS guidance requires miners and proof-of-stake validators to recognize taxable income when digital assets are created rather than when they are sold.
According to the letter, this approach creates compliance challenges because taxpayers may owe taxes before they have converted the assets into cash. The groups also argue that fluctuating token prices can leave taxpayers paying taxes on values they never ultimately realize.
They cited IRS Notice 2014-21, which governs mining rewards, and Revenue Ruling 2023-14, which applies similar treatment to staking rewards, as the source of continuing uncertainty.
The coalition said Congress, rather than the IRS, should establish a statutory framework that clearly defines when these rewards become taxable.
What the tax bill would change
Supporters say H.R. 9175 would delay tax recognition until digital assets are sold or otherwise disposed of, instead of taxing them immediately upon creation. According to the letter, the proposal is modeled on the tax treatment of self-created property while ensuring income is ultimately recognized.
The industry groups contend the legislation would eliminate what they describe as “phantom income” concerns and reduce situations where miners or validators must sell newly earned tokens simply to pay tax liabilities. They also argued that the proposal would simplify tax administration for both taxpayers and the Internal Revenue Service.
Groups warn against reopening negotiations
The coalition cautioned lawmakers against modifying the bill after what it described as a negotiated compromise. According to the letter, reopening discussions could delay long-awaited tax clarity while reintroducing uncertainty that has persisted for years.
The organizations also referenced analysis by the Joint Committee on Taxation, arguing that alternative proposals involving mandatory recognition after a fixed period would generate relatively limited revenue while significantly increasing compliance costs for taxpayers and regulators. They said preserving the legislation in its current form would provide a more practical and enforceable framework.
Congress weighs broader crypto tax overhaul
The push to pass the Tax Clarity for Mining and Staking Act comes as lawmakers consider broader changes to the U.S. tax treatment of digital assets.
Earlier this month, the House Ways and Means Committee began reviewing discussion drafts that would overhaul several areas of crypto taxation, including staking rewards, stablecoin transactions, crypto lending, and tax compliance. The proposals are expected to shape an upcoming committee hearing focused on digital asset taxation.
Rather than advancing a single comprehensive crypto tax bill, lawmakers have divided the reforms into separate measures. The approach breaks apart provisions previously included in the Digital Asset PARITY Act and earlier tax proposals backed by Senator Cynthia Lummis, allowing individual reforms to move through Congress independently.
Why the industry says timing matters
Beyond tax compliance, the groups argued that clearer rules would help keep blockchain validation activities within the United States. The letter noted that proof-of-work and proof-of-stake networks secure more than $1.7 trillion in digital assets globally and said legislative certainty would encourage miners and validators to continue operating domestically rather than relocating to jurisdictions with more predictable tax rules.
The organizations concluded by urging Congress to pass the legislation as introduced, saying a consistent tax framework would support innovation while providing clearer compliance standards for participants in blockchain networks.
Also Read: Crypto Tax Overhaul: What Congress’s New Framework Means for 60M Americans
