New Crypto Bill Would Shift Taxation of Staker Rewards

A new bipartisan bill would clarify that staking rewards should be taxed at the point of sale, according to the legislation.

Reps. Drew Ferguson (R-Ga.) and Wiley Nickel (D-N.C.) are behind the legislation, obtained by Bloomberg Tax, which would reverse an IRS decision from last summer. Under the bill, cyptocurrency stakers would only recognize their rewards as income when they sell their staking rewards, not at the time of its acquisition.

Ferguson said in a statement the bill provides clarity to the digital asset industry.

“The United States’ treatment of digital asset rewards is overly complex—leading to ...