A coalition of leading digital asset trade groups has formally urged the U.S. House Ways and Means Committee to quickly pass a key tax bill that would defer taxation on crypto mining and staking rewards until the assets are sold. In a letter sent over the weekend, the Blockchain Association, the Crypto Council for Innovation, and the Digital Chamber pressed Chairman Jason Smith and ranking Democrat Richard Neal to advance H.R. 9175, the Tax Clarity for Mining and Staking Act, as originally introduced.
The bill, debated at a committee hearing earlier this month, would exempt newly mined and staked assets from being treated as taxable income upon receipt. Under current U.S. tax code, these rewards are taxed at their market value immediately, even if the holder never sells – a rule that critics say forces validators to sell assets prematurely to cover tax obligations. The proposed legislation would instead allow taxation only when the assets are liquidated, and would also give taxpayers the option to choose between being taxed upon receipt or upon sale.
House Democrats, however, remain skeptical. At the hearing, top committee Democrats argued the measure could unfairly favor crypto over traditional investments like stocks and bonds, potentially reshaping financial markets. They have indicated that no crypto tax bills are likely to pass until after the November midterm elections, when Democrats are widely expected to regain control of the House. The American Bankers Association has also opposed the bill, warning it could drain deposits from traditional banks.
In their letter, the trade groups insisted that the current draft represents a hard-fought compromise and that any changes could derail its chances. “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,” they wrote. A Digital Chamber representative said a dozen member companies would visit Capitol Hill this week to advocate for the bill’s passage. With time running short before the midterms, the bill’s prospects – like those of the Senate’s Clarity Act – remain uncertain.
