The Blockchain Association has published its position on tax policy, arguing that “low dollar” cryptocurrency transfers should be exempt, but mining and staking should be taxed.
A US crypto lobby group has shared with Congress how it hopes crypto will be taxed and has met with House lawmakers working on a crypto tax bill to shape one of the industry’s top policy priorities.
The Blockchain Association released its crypto tax policy positions on Tuesday, which called for stablecoins to be treated as cash for ordinary purchases and for a de minimis tax exemption on “low-dollar” crypto transactions.
It argued that tax reporting for “negligible gains or losses from routine transactions imposes disproportionate costs on individuals and overwhelms tax administration without meaningful revenue upside.”
The lobby also said it supports applying wash sale rules to digital assets, letting investors claim losses on sales even if they buy the same crypto back.
The Blockchain Association’s efforts come as lawmakers debate how crypto should be taxed.
Republican Senator Cynthia Lummis introduced a bill in July to tax-exempt some crypto transactions, which was met with opposition from Democratic Senator Elizabeth Warren.
The Blockchain Association argued that tax reporting for digital assets should safeguard taxpayer privacy while still enabling effective enforcement against illicit crypto activities.
It also said that mining or staking activities should be subject to capital gains tax.
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The organization met with White House officials earlier this month to advance market structure legislation that includes favorable stablecoin rewards provisions.
Warren opposes proposed crypto lax laws
Lummis crypto tax bill included several provisions that the Blockchain Association advocated for that faced strong opposition from Warren in October.
Warren argued that the de minimis exception proposal would cost the US $5.8 billion and slammed a proposal that would allow crypto investors to avoid reporting income from crypto transactions under $300.
“If someone bought $300 worth of gold, or $300 worth of Apple stock, would they be required to report any income they made from those transactions?” she argued.
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