The US has unveiled a draft taxation plan for cryptocurrencies

In recent years, cryptocurrencies have become an integral part of the financial world, and their use continues to grow. In response, US lawmakers have introduced a new digital asset tax bill that takes into account the specifics of stablecoins and offers a deferral for staking. Let's take a closer look at what this bill includes and how it could impact investors.

Bipartisan Proposal

The bill was introduced by Representatives Max Miller of Ohio and Steven Horsford of Nevada. This bipartisan proposal aims to amend the Tax Code to reflect the growing use of cryptocurrencies as payment methods. The primary goal is to eliminate the recognition of low-margin transactions arising from the normal use of regulated payment instruments by consumers as income.

Main Provisions of the Bill

Tax Exemption for Small Transactions

According to the bill, investors will not be required to recognize gains or losses on stablecoin transactions up to $200. This rule will only apply if the coin is issued by a licensed issuer under the GENIUS Act. This innovation could significantly simplify the lives of small investors and users who make small transactions.

Tax Deferral for Staking and Mining

The bill also addresses the important issue of taxing "fictitious income" from staking and mining. If passed, taxpayers will be allowed to defer profit recognition for up to five years on rewards received by locking or mining assets. Previously, such income was taxed immediately upon receipt, which raised numerous questions and concerns among investors.

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Expanding the Tax Regime

The bill also includes expanding the existing tax regime for securities lending transactions to certain digital asset lending arrangements. This will allow for more precise regulation of cryptocurrency transactions and provide greater protection for investors. Furthermore, the bill applies wash sale rules to actively traded cryptocurrencies and allows traders and dealers to choose how they account for their coins.

Important Steps Forward

As a reminder, in December, as part of the GENIUS Act, the US Federal Deposit Insurance Corporation published proposed rules governing the application process for stablecoins. This demonstrates that lawmakers are seeking to create clearer and more understandable regulations for working with digital assets.

In Conclusion

The proposed cryptocurrency tax bill in the US is an important step toward more clearly regulating digital assets. It offers reasonable solutions for small investors and takes into account the specifics of stablecoins, which could facilitate further development of the cryptocurrency market. It is important to monitor the next steps of lawmakers and how these changes will impact users and investors in the future.