The crypto industry is urging Congress to approve a new digital asset tax bill—and claim that changing the legislation at all could risk derailing its chances of passage.
The legislation, debated at a Ways and Means committee hearing earlier this month, would exempt assets derived via crypto mining and staking from a holder’s reportable income. Currently, newly mined crypto and staking rewards held by U.S. taxpayers are treated as income, regardless of whether they are sold off.
In this week’s letter, crypto trade groups attempted to frame the current draft of the staking and mining bill as a compromise that must be pushed forward at all costs.
“Reopening the compromise already struck in this legislation would risk reviving the very problems the bill resolves and stalling a bipartisan result that is finally within reach,” the groups said.
It remains unclear, however, whether House Democrats view the current legislation as satisfactorily bipartisan. A representative for the Digital Chamber told Decrypt the organization plans to bring nearly a dozen member companies to the Hill on Wednesday to press for the tax bill’s passage.
When asked whether the group is confident that the bill can pass before the midterms—given mounting Democratic opposition—the representative said this week’s flyout should provide “a good feel for the level of motivation.”
