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Bipartisan House Draft Seeks Clearer Crypto Taxes With Stablecoin Safe Harbor

The proposal from Ways and Means members moves digital assets toward securities-style treatment.

Overview

  • The draft would exempt regulated dollar‑pegged stablecoin payments under $200 from capital gains tax.
  • Participants earning staking or mining rewards could elect to defer income recognition for up to five years, with taxation at fair market value afterward as ordinary income.
  • Eligible crypto traders could choose mark‑to‑market accounting that recognizes annual unrealized gains and losses.
  • Wash‑sale restrictions would be extended to digital assets to limit tax‑loss harvesting.
  • The framework remains a draft for House Ways and Means consideration, and it includes capital gains exemptions for foreign traders using U.S. platforms.