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Bipartisan House Draft Seeks to Update Crypto Taxes With Stablecoin Relief and Staking Deferral

The outline is a Ways and Means discussion draft open to revision.

Overview

  • Representatives Max Miller and Steven Horsford unveiled a bipartisan framework within House Ways and Means to modernize digital-asset taxation.
  • Transfers using regulated, dollar‑pegged stablecoins under $200 would not trigger capital gains tax, easing reporting for small payments.
  • Taxpayers could elect to defer recognition of staking and mining rewards for up to five years, with amounts taxed as ordinary income at the end of the deferral.
  • Eligible traders could adopt mark‑to‑market accounting, and wash‑sale restrictions would be extended to cryptocurrencies to align with securities rules.
  • Guardrails would exclude professional traders, allow suspension of the stablecoin relief if a coin loses its $1 peg, preserve Treasury anti‑abuse authority, and extend certain capital‑gains exemptions to foreign investors using U.S. intermediaries.