US lawmakers propose tax break for small stablecoin payments, staking rewards

US lawmakers, specifically Representatives Max Miller and Steven Horsford, have introduced a discussion draft to amend the Internal Revenue Code, aiming to ease the tax burden on everyday crypto users. The proposal includes exempting capital gains on stablecoin transactions up to $200, provided the asset is a US dollar-pegged stablecoin issued by a permitted issuer under the GENIUS Act and maintains a tight trading range. Safeguards against abuse, such as excluding brokers and dealers, are included.

Furthermore, the draft addresses concerns over "phantom income" from staking and mining by allowing taxpayers to elect to defer income recognition on these rewards for up to five years instead of immediate taxation. The proposal also extends existing securities lending tax treatment to certain digital asset lending arrangements and applies wash sale rules to actively traded crypto assets.

This legislative effort comes as crypto groups, like the Blockchain Association, urge the Senate to avoid overly restrictive rules on stablecoin rewards that could stifle innovation and favor large incumbents.

(Source：Cointelegraph)