Crypto Industry Groups Urge House Tax Leaders to Back Mining and Staking Tax Clarity Bill

Three crypto and blockchain industry groups have urged U.S. House Ways and Means Committee leaders to support and pass Rep. Mike Carey’s proposed bill, The Tax Clarity for Mining and Staking Act (H.R. 9175), without changes.

According to Foresight News, the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber sent a joint letter to committee chair Jason Smith and ranking member Richard Neal calling for approval of the legislation.

The letter said miners and stakers have faced long-running uncertainty over when and how mining and staking rewards should be taxed, including questions about timing, source, and characterization. It cited an IRS notice issued in 2014 requiring miners to include the fair market value of mined bitcoin in gross income, and a 2023 tax ruling that treated staking validation rewards as immediately taxable income to stakers.

The groups said assets secured through proof-of-stake (PoS) and proof-of-work (PoW) mechanisms now exceed $1.7 trillion.

They argued the bill draws on longstanding tax principles for newly created property and would make substantive adjustments to the nature and timing of taxation to ensure income is ultimately recognized and taxed, while reducing the risk that taxpayers are forced to sell assets to pay taxes before they can be liquidated.

The letter also contrasted the bill with an alternative approach that would impose a mandatory five-year recognition period. Citing estimates from the U.S. Congress Joint Committee on Taxation, the groups said that alternative would generate minimal additional tax revenue while significantly increasing compliance burdens for taxpayers, tax advisers, and the IRS.

The organizations urged Congress to preserve what they described as the bill’s current balance and pass it as introduced.