Hello crypto enthusiasts, Major changes are coming to the digital asset world in the US. A new crypto-focused tax framework has recently been under discussion in the US House of Representatives, signalling that taxation of digital assets could change.

This draft proposal, supported by Republican Senator Max Miller and Democrat Steven Horsford, shows that both parties agree that US crypto tax rules need to be modernised.

Tax Relief on Stablecoin Payments

The most striking part of this proposal is a de minimis exemption for stablecoin payments. According to the draft, transactions up to $200 will no longer be taxable.

This change will significantly simplify everyday crypto use. Consumers can use stablecoins to pay for goods and services without tracking capital gains on small transactions. However, lawmakers plan to limit this exemption. The objective is solely to reduce paperwork, not to save taxes. Reporting requirements and anti-abuse rules will prevent large transactions from being broken into smaller ones.

Clear Rules for Crypto Lending

The draft proposal also covers digital asset lending, which has long been mired in tax uncertainty. According to this proposal, if the lender receives a digital asset of the same type back, it will be considered tax-free.

However, this framework excludes arrangements that resemble sales or manipulate the tax base. NFTs, illiquid or thinly traded tokens, tokenised securities, and derivative-based instruments are excluded from this exemption.

Tax Deferral on Mining and Staking

Another major change relates to the taxation of mining and staking rewards. Instead of paying taxes immediately upon receiving rewards, this proposal allows taxpayers to defer income recognition for up to five years.

This change acknowledges the realities of blockchain validation and addresses cash-flow challenges for miners and stakers, especially during times of market volatility.

Changes to Crypto Tax Policy in the US

Overall, this draft presents a more pragmatic approach. By simplifying everyday payment rules, setting clear standards for complex transactions, and providing flexibility for network participants, this proposal seeks to secure digital assets a stronger place in the financial system. If introduced and passed, it could be the most significant update to US crypto tax rules to date.

FAQs

Q1. What is the new crypto tax proposal?
This is a bipartisan draft that seeks to modernise crypto taxation in the US, including simplifying payments, clarifying lending rules, and providing tax flexibility for mining/staking.

Q2. How will crypto lending taxes change?
Lending and returning the same digital asset will remain tax-free, but structures like NFTs, illiquid tokens, and sales are excluded.

Q3. Is this crypto tax framework now law?
No, it’s currently in draft form and hasn’t been formally introduced. Nevertheless, it shows a strong bipartisan trend toward clear and practical rules.

Q4. What changes will occur regarding stablecoin payments?
Transactions up to $200 will no longer be taxable, making everyday small payments easier.

Q5. What changes will occur regarding mining and staking rewards?
Income recognition will now be deferred for up to five years, alleviating cash-flow challenges.

Disclaimer: This article is for informational purposes only and is for amateur investors. The information provided here is based on the draft proposal and public sources. Official rules and regulations are determined by Krafton or the US government. Make all investment and tax decisions only through official channels and after consulting a financial advisor.

Also Read:

Gold Prices Tumble Amid Strong Dollar, Weekly Uptrend Still Intact