A bipartisan group of 18 US House lawmakers is urging the Internal Revenue Service to review the country’s Crypto staking tax rules before 2026.
The letter, sent to IRS acting commissioner Scott Bessent on Friday, was led by Republican Mike Carey.
The lawmakers requested updated guidance on what they describe as “burdensome” tax laws affecting crypto staking.
“This letter is simply requesting fair tax treatment for digital assets and ending the double taxation of staking rewards is a big step in the right direction,” Carey said.
The lawmakers propose that taxes on staking rewards should only be applied when the rewards are sold.
This, they argue, ensures stakers are taxed based on their actual economic gain.
Currently, stakers are taxed twice: once when rewards are received and again when the assets are sold.
The lawmakers said this discourages participation in the staking market, even though staking is essential for the security of certain blockchain networks.
“Millions of Americans own tokens on these networks.
Network security — and American leadership — requires those taxpayers to stake those tokens, but today the administrative burden and prospect of over taxation discourages that participation,” the letter states.
The lawmakers also asked if there are any administrative hurdles preventing guidance updates before the end of the year.
They emphasized that such updates should align with the administration’s goal of “strengthening US leadership in digital asset innovation.”
Additional Moves in Congress
Separately, House representatives Max Miller and Steven Horsford introduced a draft discussion aimed at easing tax burdens for crypto users.
Their proposal would exempt small stablecoin transactions from capital gains taxes and allow deferrals on staking and mining rewards.
Unlike Carey’s group, Miller and Horsford suggested a deferral option rather than a complete change to current tax laws.
Under their plan, taxpayers could elect to defer income recognition on staking or mining rewards for up to five years.
This would delay taxation until the rewards are actually sold or realized.
The combined efforts indicate growing Congressional interest in making crypto taxation more flexible and supportive of innovation.