Blockchain Association calls for clearer crypto tax rules as broader bill stalls

Industry group urges Congress on tax clarity

The Blockchain Association, a crypto (digital assets that use a blockchain, or a shared digital record) industry group representing over 100 firms, has sent a letter to congressional leaders urging clearer tax rules for digital assets as progress stalls on broader crypto legislation.

The letter was sent to Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, Speaker of the House Mike Johnson and House Minority Leader Hakeem Jeffries.

Current tax rules called unworkable

According to the group, current tax policy needs to be updated and is unworkable. Lindsay Fraser, chief policy officer of the Blockchain Association, said Americans who use digital assets want to follow the law and pay taxes they owe, but today's rules are often unclear and unworkable.

Key demands from the letter

• A de minimis exemption (a small threshold below which certain transactions may not need to be reported or taxed).


• Protection for taxpayer privacy.


• Extending wash sale rules to crypto (rules that limit claiming losses on certain sales and repurchases).

Tax bill moves forward as broader legislation stalls

On the House side, the Digital Asset Tax Certainty Act passed out of the House Ways and Means Committee last month. That bill would set federal tax rules for digital assets, including a threshold so people would not have to pay taxes on network fees if the fee is $10 or less. It is not expected to be taken up again until after November elections.

Meanwhile, the broader Clarity Act has stalled in the Senate after failing its first procedural vote last month. The Blockchain Association said progress on clear rules for digital assets cannot fully succeed without a tax framework that is clear, administrable, technology-neutral, and aligned with economic reality.

Sources

• The Block