More than a dozen House Republicans urged the Internal Revenue Service (IRS) on Thursday to review and update its guidance on crypto staking ahead of the new tax year.
In a letter to Treasury Secretary Scott Bessent, who also serves as acting IRS commissioner, the lawmakers argued the current guidance "fails to accurately reflect the underlying technological and economic realities of staking and diverges from foundational principles of tax law."
"U.S. taxpayers face a staking tax regime that is burdensome to comply with, difficult to administer, and out of step with this Administration's priorities," they wrote.
Crypto staking is the process through which blockchain networks validate transactions, resulting in a reward. Current IRS guidance, put forward in 2023, require staking rewards to be included as part of taxable income.
However, the lawmakers contend that crypto miners and stakers are "the first owners of this new property," which is "never taxable income in the hands of its first owner, and instead gives rise to income upon its sale or disposition."
This view is widely shared by the crypto industry. Miller House-Levine, founder and CEO of the Solana Policy Institute, said Friday that the IRS letter was "very encouraging" and a "nice way to cap off" an "extremely productive year for crypto policy."
Plus: Sen. Cynthia Lummis (R-Wyo.), who has been a key proponent of crypto legislation over the years, announced Friday that she will not be seeking reelection.
The industry touted Lummis' digital assets work following the announcement.
Ji Hun Kim, CEO of the Crypto Council for Innovation, called the senator a "leading champion for digital assets in Washington."
"Her deep understanding and convction have helped elevate digital asset policy and strengthen U.S. innovation and leadership," Kim said in a statement. "The digital asset ecosystem is stronger because of her service, and we are grateful for her leadership."
ICYMI: The Senate has at last confirmed a new chair of the Commodity Futures Trading Commission (CFTC), nearly a year into Trump's presidency.
Mike Selig will take the reins from acting Chair Caroline Pham, who is the only remaining commissioner at the agency typically helmed by five people.
His confirmation comes as the CFTC is poised to take on new responsibilites regulating the crypto industry.
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