US House Crypto Tax Bill Excludes Mining and Staking Reward Deferral Amid Broader Regulatory Shifts

The newly introduced $1.2 trillion fiscal framework, detailed in a 114-page bill from the US House Committee on Ways and Means, proposes sweeping changes to cryptocurrency taxation—redefining how crypto fees, stablecoins, and lending activities are taxed. However, the legislation notably omits proposed deferral of tax on mining and staking rewards, a move that has drawn criticism from blockchain industry advocates. Key figures such as Rep. Darrell Issa (R-CA) and Sen. Cynthia Lummis (R-WY), who have long championed crypto-friendly policies, expressed disappointment, arguing that delayed taxation could incentivize long-term investment and innovation in decentralized networks. Under the new provisions, crypto transaction fees will now be treated as ordinary income upon receipt, while stablecoin redemption and lending platform payouts face stricter reporting requirements. These shifts mark a significant departure from current IRS guidance, which allows for more flexible timing of taxable events. The bill’s focus on transparency and revenue generation reflects broader efforts by Treasury Secretary Janet Yellen to strengthen digital asset oversight amid rising concerns over illicit finance and capital gains avoidance. Despite its broad scope, the absence of reward deferral mechanisms leaves many in the Web3 community concerned about potential disincentives for participation in proof-of-stake networks. Industry leaders including Coinbase CEO Brian Armstrong and Chainlink founder Sergey Nazarov have urged lawmakers to reconsider, warning that the current approach may stifle technological advancement. As the bill advances through committee hearings, stakeholders are closely watching for amendments that could balance fiscal responsibility with innovation-friendly policy.