The Blockchain Association, representing over 100 members, sent a letter to U.S. congressional leaders calling for bipartisan digital asset tax legislation aimed at reducing compliance burdens and clarifying tax treatment for the crypto industry. The association proposed establishing a de minimis tax exemption threshold for small transactions, treating stablecoins as cash equivalents, and limiting broker reporting obligations under Form 1099-DA to intermediaries with custody or control of client assets, excluding non-custodial developers and infrastructure participants.
Key recommendations include classifying mining and staking rewards as self-created property taxed upon disposal rather than at receipt, clarifying that wallet-to-wallet transfers, smart contract interactions, and cross-chain movements should not trigger taxable events when economic ownership remains unchanged, and allowing mark-to-market accounting for digital assets. The association also urged expanding staking eligibility in retirement accounts and explicitly including blockchain development within the scope of the research and development tax credit.
Blockchain Association Urges Congress for Digital Asset Tax Reform to Ease Compliance Burden
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