The U.S. Congress is making renewed efforts to simplify and clarify cryptocurrency taxation, particularly targeting small stablecoin transactions and staking rewards. These legislative attempts aim to provide relief for everyday users and foster a more predictable regulatory environment for digital assets.
Congressional Efforts for Crypto Tax Relief
In a recent bipartisan initiative, U.S. House Representatives Max Miller (Ohio) and Steven Horsford (Nevada) have put forth a proposal for a de minimis tax exemption on stablecoin transfers valued at $200 or below. This measure is designed to align with existing foreign currency transaction exceptions and is touted as a vital step to protect consumers, establish clear rules for innovators and investors, and enhance compliance across the crypto ecosystem. The focus is on making routine, low-value stablecoin transactions less burdensome from a tax perspective.
Past Legislative Attempts and Current Tax Landscape
This is not the first time Congress has sought to streamline crypto taxation. A similar effort in July 2025 by Senator Cynthia Lummis proposed a $300 exemption for small transactions and advocated for tax deferral on staking and mining rewards, though with an annual cap of $5,000 on crypto gains to prevent misuse. This earlier plan, however, did not gather sufficient support and failed to pass, partly due to opposition from Democrats concerned about potential government revenue losses. Currently, the U.S. Internal Revenue Service (IRS) treats cryptocurrency as property, meaning transactions are subject to capital gains tax rates that can range from 0% to 37%, depending on the holding period and the investor's income bracket. The inclusion of these latest tax relief proposals within a broader crypto market structure bill remains uncertain.
