Bipartisan Push Targets IRS Crypto Staking Tax Rules Ahead of 2026

[madmax]

A group of 18 bipartisan US House lawmakers is urging the IRS to review and update crypto staking tax guidance before the new year. Led by Republican Mike Carey, the letter highlights concerns over “burdensome” taxation, which currently taxes staking rewards both upon receipt and again at sale.

Key points:

Lawmakers request taxes be applied only at the time of sale, aligning taxation with actual economic gain.

The move aims to encourage participation in staking, crucial for network security on proof-of-stake blockchains.

The letter emphasizes that updating guidance supports the administration’s goal of strengthening US leadership in digital asset innovation.

[etfs]

staking taxes = phantom income nightmares lol