The Blockchain Association has urged the U.S. Congress to introduce clearer and fairer tax rules for cryptocurrencies, citing existing regulations that create uncertainty and compliance burdens for approximately 67 million American crypto holders.
In an October 22, 2026 letter to Senate and House leaders, the industry group outlined its Digital Asset Tax Principles and called for bipartisan legislation that reflects how digital assets function today. The association also launched TaxClarityforAmerica.com to encourage Americans to contact their elected representatives in support of the proposed reforms.
Key Proposals
The Blockchain Association is seeking several specific changes to existing tax treatment of digital assets:
- A meaningful de minimis exemption to simplify taxes on small crypto transactions
- Cash-like tax treatment for stablecoins to reduce reporting requirements
- Taxation of mining and staking rewards when sold or disposed of, rather than when initially received, to prevent tax liabilities on unrealized gains
- Broker reporting requirements applied only to intermediaries with custody or control of customer assets, excluding non-custodial developers and infrastructure providers
Additional Recommendations
The association also proposes preventing taxes from being triggered when users transfer digital assets between their own wallets, interact with smart contracts, or move assets across blockchains, provided their underlying economic ownership remains unchanged.
Other recommendations include extending wash-sale rules to crypto, allowing crypto investments in retirement accounts, clarifying staking rules for trusts and investment vehicles, permitting mark-to-market accounting for eligible digital assets, and simplifying charitable donations of cryptocurrencies. The group also proposes recognizing blockchain development as eligible research and development activity for tax credits.
Additionally, the association advocates for a statutory safe harbor for foreign investors trading digital assets on U.S. exchanges, arguing that clearer tax rules could attract liquidity, encourage businesses to remain in the U.S., and prevent innovation from moving offshore.
Current Status
These proposals represent recommendations to Congress and have not yet been enacted into law. Any changes would require legislative action before taking effect.
The Blockchain Association's efforts coincided with the submission of a comment letter to the U.S. Treasury on proposed GENIUS Act regulations, warning against excessive compliance burdens on crypto firms, exchanges, and DeFi platforms.
