CMC News

#Lawmakers Push #IRS To End #Staking Double Taxation

Eighteen bipartisan House lawmakers have asked the Internal Revenue Service to review crypto staking tax rules before 2026, arguing that current regulations create burdensome double taxation. Republican Mike Carey led the group in a Friday letter to acting IRS commissioner Scott Bessent, requesting updated guidance on #staking rewards.

The letter calls for applying taxes at the time of sale rather than upon receipt of rewards. This ensures stakers face taxation based on actual economic gain instead of unrealized value. Current laws tax stakers when receiving rewards and again when selling them, hindering participation in staking markets that support fundamental blockchain operations.

Carey stated that the letter requests fair tax treatment for digital assets and that ending double taxation represents progress toward that goal. The lawmakers argued that millions of Americans own tokens on proof-of-stake networks. Network security and American leadership require taxpayers to stake tokens, but administrative burden and over-taxation prospects discourage participation.