US Draft Bill: $200 Stablecoin Tax Exemption, Staking Deferral
U.S. lawmakers have unveiled a discussion draft that would create a $200 capital gains tax exemption for qualifying stablecoin payments and introduce a multi-year deferral option for taxes on crypto staking and mining rewards.
The proposal, brought forward by Representatives Max Miller of Ohio and Steven Horsford of Nevada, aims to amend the Internal Revenue Code to reflect the increasing use of digital assets in everyday transactions. The draft states that its goal is to remove low-value gain recognition stemming from routine consumer use of regulated payment stablecoins.
Under the plan, users would not recognize gains or losses on stablecoin transactions up to $200, provided the stablecoin is issued by a permitted issuer under the GENIUS Act, is pegged to the U.S. dollar, and maintains a tight trading range around $1.
The draft includes guardrails to prevent misuse. The exemption would not apply if the stablecoin trades outside a narrow price band, and brokers or dealers would be ineligible. The Treasury Department would retain authority to implement anti-abuse provisions and reporting requirements.
Draft would defer taxes on staking and mining rewards
Beyond payments, the proposal addresses taxation of staking and mining rewards. Taxpayers could elect to defer income recognition on such rewards for up to five years instead of being taxed upon receipt. The draft describes this as a compromise between immediate taxation upon “dominion and control” and full deferral until the assets are disposed of.
The draft also would extend existing securities lending tax treatment to certain digital asset lending arrangements, apply wash sale rules to actively traded crypto assets, and allow traders and dealers to elect mark-to-market accounting for digital assets.
Industry groups ask Senate to revisit stablecoin rewards limits
Last week, the Blockchain Association sent a letter to the U.S. Senate Banking Committee—signed by more than 125 crypto companies and industry groups—opposing efforts to broaden restrictions on stablecoin rewards to third-party platforms.
The group argued that extending the GENIUS Act’s limitations beyond stablecoin issuers would suppress innovation and increase market concentration in favor of larger incumbents.
The letter compared crypto rewards to incentives commonly offered by banks and credit card companies and warned that restricting similar features for stablecoins would undermine competition.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
