As congressional momentum behind the crypto market structure bill known as the CLARITY Act slows, the Blockchain Association has stepped forward with its own proposal aimed at shaping the next phase of digital asset regulation in the United States.
On Tuesday, the Washington-based nonprofit — which represents more than 125 crypto companies — released a document titled Digital Asset Tax Principles.
Blockchain Association’s ProposalShe emphasized that tax rules should be practical for both taxpayers and regulators, adding that the group’s recommendations are designed to provide clarity while reinforcing US competitiveness in the global digital economy.
The association also proposes that stablecoins be treated as cash for tax purposes, arguing that such treatment would prevent disproportionate reporting requirements for routine payments.
Another key theme is functional consistency. The group argues that economically similar activities should be taxed similarly, regardless of the technical structure behind them.
For example, it recommends that mining and staking rewards be treated as self-created property, taxable only when the tokens are sold or otherwise disposed of, and sourced to the owner’s residence.
Crypto Tax PlanIn addition, the association highlights privacy and safety concerns, advocating for reporting requirements that achieve legitimate enforcement goals without unnecessarily compromising taxpayer privacy.
Global competitiveness is another pillar of the proposal. The Blockchain Association suggests implementing a safe harbor for foreign individuals trading on US exchanges and adopting policies that encourage digital asset activity to remain onshore rather than move abroad.
Currently, the Internal Revenue Service (IRS) classifies crypto as property rather than currency. As a result, most crypto-related activity falls into one of two categories: capital gains or ordinary income.
Featured image from OpenArt, chart from TradingView.com
