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<p>A month after its signature CLARITY Act stalled in the Senate, the crypto industry's biggest trade group is turning to the tax code.</p>
<p>On Oct. 22, the Blockchain Association <a href="https://theblockchainassociation.org/api/media/file/CryptoTaxAdvocacyOctober2026.pdf" rel="noopener noreferrer nofollow">sent a letter</a> to Senate Majority Leader John Thune (R-S.D.), Senate Minority Leader Chuck Schumer (D-N.Y.), House Speaker Mike Johnson (R-La.), and House Minority Leader Hakeem Jeffries (D-N.Y.), urging them to pass bipartisan crypto tax legislation.</p>
<p>The letter argues that the rules governing 67 million American crypto holders were <strong>"written for a different era</strong>," and warns they risk driving innovation offshore.</p>
<p><strong><a href="https://www.thestreet.com/crypto/policy/hegseth-issues-stern-warning-to-pentagon-staff" rel="noopener noreferrer nofollow">Related: Hegseth issues stern warning to Pentagon staff</a></strong></p>
<h3 id="new-campaign-before-the-midterms">New campaign before the midterms</h3>
<p>The letter, signed by Chief Policy Officer Lindsay Fraser, is the group's first broad push on taxes since the CLARITY Act <a href="https://www.thestreet.com/crypto/policy/live-clarity-act-faces-senate-cloture-vote-in-today" rel="noopener noreferrer nofollow">failed</a> last month.</p>
<blockquote>
 <p><strong>"Americans who use digital assets aren't asking for special treatment,"</strong> Fraser said in a <a href="https://theblockchainassociation.org/posts/blockchain-association-urges-congressional-leaders-to-advance-bipartisan-digital-asset-tax-legislation-launches-taxclarityforamericacom" rel="noopener noreferrer nofollow">statement</a>.</p>
</blockquote>
<p>The group also launched <a href="https://taxclarityforamerica.com/" rel="noopener noreferrer nofollow">TaxClarityforAmerica.com</a>, which lets voters contact their members of Congress directly.</p>
<h3 id="what-the-crypto-lobby-demands">What the crypto lobby demands:</h3>
<ul>
 <li>a "meaningful" de minimis exemption for small transactions</li>
 <li>stablecoins treated as cash, with relief from <a href="https://www.irs.gov/businesses/understanding-your-form-1099-da" rel="noopener noreferrer nofollow">Form 1099-DA </a>reporting</li>
 <li>no tax on transfers between a holder's own wallets</li>
 <li>staking and mining rewards taxed only when sold</li>
 <li>crypto allowed in retirement accounts</li>
 <li>mark-to-market accounting option for crypto&nbsp;</li>
 <li>wash sale rules to close loss-harvesting gaps</li>
 <li>no&nbsp;costly third-party appraisals on charitable crypto gifts</li>
 <li>R&amp;D tax credits for blockchain development</li>
 <li>protecting taxpayer privacy and safety</li>
 <li>encouraging tax policy for crypto developers and companies to establish operations in the U.S.</li>
</ul>
<p>Brokers use Form 1099-DA to report the proceeds from crypto sales and swaps, and in some cases the cost basis, to investors and the IRS.</p>
<h3 id="the-twist-giving-up-the-wash-sale-loophole">The twist: giving up the wash-sale loophole</h3>
<p>The most notable demand is a concession. The association backs extending wash-sale rules to crypto, provided they don't disadvantage crypto against traditional assets or capture everyday transactions.</p>
<p>Wash-sale rules block stock investors from selling at a loss and buying back within 30 days just to claim a deduction. Crypto traders face no such limit today.</p>
<p>The change would be worth real money to Washington. The Treasury Department&nbsp;<a href="https://home.treasury.gov/system/files/131/General-Explanations-FY2024.pdf#page=225" rel="noopener noreferrer nofollow">estimated in 2024</a> that it would raise nearly $24 billion over a decade by applying&nbsp;the wash sale rules to crypto assets.</p>
<p>That gives lawmakers a way to work toward a broader crypto tax bill, and gives the industry something to trade.</p>
<h3 id="more-on-thestreet-roundtable">More on TheStreet Roundtable:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/warren-buffett-once-offered-25-for-all-bitcoin-heres-its-value-now-" rel="noopener noreferrer nofollow"><strong>Warren Buffett once offered $25 for all Bitcoin. Here’s its value now</strong></a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/ken-griffins-ai-bubble-warning-hits-bitcoin-already" rel="noopener noreferrer nofollow"><strong>Billionaire hedge fund manager's AI bubble warning hits Bitcoin already</strong></a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/jpmorgan-flags-a-major-risk-for-crypto-investors" rel="noopener noreferrer nofollow"><strong>JPMorgan flags a major risk for crypto investors</strong></a></li>
</ul>
<h3 id="new-push-for-an-old-wishlist">New push for an old wishlist</h3>
<p>The principles in the latest letter aren't new. The group <a href="https://theblockchainassociation.org/posts/blockchain-association-releases-digital-asset-tax-principles-during-capitol-hill-fly-in" rel="noopener noreferrer nofollow">first released them</a> in February this year.</p>
<p>Congress is already moving.&nbsp;</p>
<p>In September, House Ways and Means <a href="https://www.congress.gov/bill/119th-congress/house-bill/10357/text" rel="noopener noreferrer nofollow">advanced the Digital Asset Tax Certainty Act</a>, which exempts network fees of $10 or less and extends wash-sale rules to crypto.</p>
<p>Sen. Steve Daines, R-Mont, last month&nbsp;<a href="https://x.com/SteveDaines/status/2105349333277388841" rel="noopener noreferrer nofollow">introduced a Senate bill</a>&nbsp;that would make small stablecoin purchases tax-free.</p>
<p>The Blockchain Association endorses neither. Critics remain, too. Sen. Elizabeth Warren, D-Mass, has <a href="https://www.banking.senate.gov/newsroom/minority/at-crypto-tax-hearing-warren-questions-witnesses-on-multi-billion-dollar-cost-to-taxpayers-of-crypto-industry-handouts" rel="noopener noreferrer nofollow">argued</a> a de minimis exemption would cost $5.8 billion.</p>
<h3 id="how-the-clarity-act-collapsed">How the CLARITY Act collapsed</h3>
<p>The tax push follows the failure of the <a href="https://www.thestreet.com/crypto/tag/clarity-act" rel="noopener noreferrer nofollow">Digital Asset Market Clarity Act</a>. The bill would have set federal crypto rules and settled a long-running turf war between regulators.</p>
<p>The Securities and Exchange Commission (SEC) would have overseen tokens treated as securities, and the Commodity Futures Trading Commission (CFTC) would have gained broad authority over spot trading in digital commodities such as Bitcoin.</p>
<p>On Sept. 15, the Senate <a href="https://www.thestreet.com/crypto/policy/live-clarity-act-faces-senate-cloture-vote-in-today" rel="noopener noreferrer nofollow">rejected cloture </a>49–50, 11 votes short of the 60 needed. Every Senate Democrat voted no, joined by three Republicans.</p>
<p>Democrats objected to ethics rules in the bill covering officials’ crypto income. The bill however isn't formally dead, since the Senate only declined to begin debate.</p>
<h2 id="the-roundtable-100">The Roundtable 100</h2>
<p>If you follow our market coverage, don’t miss the <a href="https://roundtable100.com/tab/rankings" rel="noopener noreferrer nofollow">Roundtable 100</a><strong>.</strong> Updated every Friday, it's a power ranking of the 100 most investable tech stocks, including digital assets. Check out the latest <a href="https://roundtable100.com/" rel="noopener noreferrer nofollow">RTB 100</a> rankings at <a rel="noopener noreferrer nofollow">roundtable100.com</a>.</p>
<p><strong><a href="https://www.thestreet.com/crypto/markets/banker-coin-defies-oil-shock-as-gold-sinks" rel="noopener noreferrer nofollow">Related: 'Banker coin' defies oil shock as gold sinks</a></strong></p>

After CLARITY flop, crypto lobby widens fight to taxes in new letter

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