Blockchain Association Pitches Crypto Tax Plan to Congress

A US crypto lobby group has shared with Congress its tax proposals for crypto and has met with House lawmakers working on a crypto tax bill to shape one of the industry’s top policy priorities.

The Blockchain Association released its crypto tax policy positions on Tuesday, which called for stablecoins to be treated as cash for ordinary purchases and for a de minimis tax exemption on “low-dollar” crypto transactions.

It argued that tax reporting for “negligible gains or losses from routine transactions imposes disproportionate costs on individuals and overwhelms tax administration without meaningful revenue upside.”

The group also said it supports extending wash-sale rules to digital assets, which would limit investors’ ability to claim losses if they repurchase the same asset within a specified period.

The Blockchain Association’s efforts come as lawmakers debate how to tax crypto.

Republican Senator Cynthia Lummis introduced a bill in July to tax-exempt some crypto transactions, which was met with opposition from Democratic Senator Elizabeth Warren.

The Blockchain Association argued that tax reporting for digital assets should safeguard taxpayer privacy while still enabling effective enforcement against illicit crypto activities.

It also argued that mining and staking rewards should be treated as self-created property and taxed when sold or otherwise disposed of, rather than when they are received.

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The organization met with White House officials earlier this month to advance market structure legislation that includes favorable stablecoin rewards provisions.

Warren opposes proposed crypto tax laws

Lummis’ crypto tax bill included several provisions that the Blockchain Association advocated for, but that faced strong opposition from Warren in October.

Warren argued that the de minimis exception proposal would cost the US $5.8 billion and slammed a proposal that would allow crypto investors to avoid reporting income from crypto transactions under $300. 

“If someone bought $300 worth of gold, or $300 worth of Apple stock, would they be required to report any income they made from those transactions?” she argued.

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