Bipartisan lawmakers Reps. Ferguson and Nickel have introduced a bill proposing to prevent double taxation by taxing staking rewards only at the time of sale. Staking rewards are earned by cryptocurrency holders who participate in securing and validating a blockchain network.
Currently, their taxation remains unclear, leaving many investors confused about when they should be taxed. The bill seeks to define staking rewards as created property under the U.S. tax code and has garnered positive feedback from the broader community.
It aims to provide much-needed tax clarity for the digital assets industry, establish U.S. leadership in digital asset tax treatment, and encourage innovation and business in the United States. According to the proposed law, crypto investors earning staking rewards would be required to include the value of those rewards in their gross income when filing taxes.
The idea of taxing block rewards from proof-of-work or proof-of-stake networks only at the time of sale has been met with enthusiasm. Reps. Ferguson and Nickel are advocates for implementing clear regulatory frameworks for digital assets.
They emphasized the importance of the law in providing clarity and promoting the growth of the digital asset industry in the United States.