US lawmakers have introduced a discussion draft that would make tax reporting easier for small stablecoin payments and allow some crypto earners to delay taxes on staking and mining rewards.
The plan was reportedly circulated by Reps. Max Miller (Republican of Ohio) and Steven Horsford (Democrat of Nevada). The proposal aims to clarify rules that many say are confusing for everyday users and small businesses.
Stablecoin Safe Harbor for Small Payments
Based on reports, the project would create a safe harbor for regulated dollar-pegged stablecoins when used like cash. Under the plan, capital gains on stablecoin transactions below $200 would be tax-exempt.
This $200 threshold is intended to prevent everyday purchases – coffee, tips, small expenses – from triggering tax formalities and capital gains calculations. The exemption would only apply to stablecoins issued by an authorized issuer and that maintain a stable peg to the U.S. dollar.
A rollover option for staking and mining rewards
Reports have revealed another major change: taxpayers could choose to defer taxes on staking and mining rewards. Instead of being taxed as soon as the awards are received, a taxpayer could choose to defer recognition for up to five years.
Once this period ends, the awards would be taxed as ordinary income at fair market value. The election would be voluntary, and some taxpayers may still have to pay taxes if they later sell or convert their assets.
Image: TransFi
Mark to market and wash sale provisions also included
The project does more than just touch on stablecoins and staking. This would apply wash sale rules to digital assets, limiting the ability to claim artificial losses by quickly repurchasing the same token.
This also creates the possibility of opting for mark-to-market accounting for certain traders, who would consider their holdings as sold at the end of the year for tax calculations. These measures aim to bring crypto tax practices closer to other parts of the tax code and reduce the gaps that the IRS says exist.
A project, not yet a bill
Lawmakers described the text as a discussion draft and spoke with stakeholders and committees. The measure has not been formally introduced as a bill, and changes could occur as it moves through the House Ways and Means Committee. If adopted, the framework is drafted to be effective for tax years beginning after December 31, 2025.
Featured image from Chainalysis, chart from TradingView
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