Blockchain Association Submits Suggestions for US Crypto Tax Legislation


This article has been republished with permission from Binance News.

According to Cointelegraph, the Blockchain Association, a US-based cryptocurrency advocacy group, has submitted suggestions for lawmakers to consider in potential legislation on the tax treatment of digital assets. In a letter to US Senators Ron Wyden and Mike Crapo, the association urged lawmakers to support the Keep Innovation in America Act, a bill aimed at changing the reporting requirements for certain taxpayers involved in crypto transactions. The group also called for legislation to create symmetry between the taxation of crypto and non-crypto assets and clarify requirements for information on income earned from staking and mining crypto.

Some recommendations were similar to those proposed by crypto advocacy group Coin Center in August, such as establishing a de minimis threshold to exclude gains or losses of certain crypto transactions from tax reporting requirements. The Blockchain Association submitted the letter on the last day the US Senate Financial Services Committee said it would be accepting responses following a July request.

Other suggestions included opposing a digital asset mining excise tax proposed by the Biden administration, claiming the measure could inhibit the growth and development of the crypto industry. The proposal, announced in March as part of US President Joe Biden’s fiscal year 2024 budget, would include a 30% excise tax on electricity used by crypto miners. The call for crypto tax guidance by US lawmakers followed a July 31 announcement from the Internal Revenue Service stating that filers must report staking rewards as gross income in the year they were received, setting new standards for US taxpayers in 2024.

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