Bipartisan House Lawmakers Propose New Crypto Tax Framework for Stablecoins and Staking

TLDR:

• Stablecoin transactions under $200 could be exempt from capital gains taxes.
• Staking and mining rewards may be taxed on a deferred basis for up to five years.
• Digital assets would follow securities-related tax rules for traders and investors.
• Wash-sale restrictions extended to cryptocurrencies, closing common tax loopholes.

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Crypto tax framework efforts in the US House are taking shape as bipartisan lawmakers move to clarify how digital assets are taxed. 

According to Bloomberg, Representatives Max Miller and Steven Horsford are drafting a proposal that addresses stablecoin transactions, staking rewards, and crypto trading rules. 

The framework is designed to bring digital assets closer to traditional securities taxation while responding to long-standing industry calls for certainty within the US tax system.

Stablecoin Exemptions and Lawmakers’ Rationale

At the center of the crypto tax framework is a limited capital gains exemption for stablecoin transactions. 

The draft would exempt regulated, dollar-pegged stablecoin payments under $200 from capital gains taxes.This provision reflects lawmakers’ focus on everyday transactions rather than speculative trading. 

The exemption would not apply to other cryptocurrencies, reinforcing a narrow and clearly defined safe harbor.

Bloomberg summarized the move, stating that “a bipartisan House duo is drawing up a cryptocurrency tax framework that would provide a safe harbor for some stablecoin transactions.” The tweet framed the effort as part of a broader push for tax clarity.

Representative Max Miller explained the motivation behind the proposal in a public statement. 

“America’s tax code has failed to keep pace with modern financial technology,” Miller said, adding that the draft seeks “clarity, parity, fairness, and common sense” for digital asset taxation.

Staking Rewards, Trading Rules, and Committee Expectations

The crypto tax framework also addresses how staking and mining rewards are taxed. Current IRS guidance treats rewards as taxable income when received, a position that has divided lawmakers.

Miller and Horsford propose an optional deferral period of up to five years. After that period, rewards would be taxed as income based on their fair market value at that time.

A spokesperson for Representative Horsford described the goal as collaborative progress within the House Ways and Means Committee. 

“The hope is that the committee will work together in good faith to set these critical rules of the road,” the spokesperson said.

Beyond rewards, the framework would place digital assets under securities-related tax rules. This includes allowing eligible traders to use mark-to-market accounting and extending wash-sale restrictions to cryptocurrencies.

The draft would also close gaps that allow certain crypto transactions to secure gains while deferring tax obligations. 

At the same time, it would extend existing capital gains exemptions to foreign investors trading digital assets through US intermediaries.

Taken together, the crypto tax framework reflects a measured attempt to integrate digital assets into established tax structures. 

By combining targeted exemptions, optional deferrals, and stricter trading rules, the proposal signals a shift toward clearer and more consistent treatment of cryptocurrencies under US tax law.

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