Crypto Stakers Could Defer Taxes Under New US Lawmaker Proposal
What Does the Draft Bill Change for Everyday Crypto Users?
US lawmakers have circulated a discussion draft that would ease the tax burden on routine crypto use by carving out exemptions for small stablecoin payments and delaying taxation on staking and mining rewards. The proposal, introduced by Representatives Max Miller of Ohio and Steven Horsford of Nevada, viewks to update the Internal Revenue Code to reflect how digital assets are increasingly used for payments rather than speculation.
At the center of the draft is a $200 de minimis exemption for stablecoin transactions. Under the proposal, users would not need to calculate capital gains or losses on stablecoin payments below that threshold, provided the asset is issued by a , is pegged to the US dollar, and trades within a narrow range around $1.
The draft states that its intent is “to eliminate low-value gain recognition arising from routine use of regulated payment stablecoins.” In practical terms, that would remove one of the largegest frictions facing stablecoin adoption: the need to track taxable events for small, everyday purchases.
Investor Takeaway
How Does the Proposal Limit Abuse?
The exemption is tightly scoped. It would only apply to stablecoins that remain close to their $1 peg, and it would not extend to brokers, dealers, or professional intermediaries. If a stablecoin trades outside a defined price band, transactions using that asset would no longer qualify for the tax break.
The Treasury Department would retain authority to issue anti-abuse rules and impose reporting requirements where needed. This gives regulators flexibility to respond if the exemption is used in ways that go beyond everyday consumer payments.
By tying eligibility to the GENIUS Act framework, the proposal links tax relief directly to compliance standards for issuers. That approach contrasts with earlier, broader crypto tax proposals that struggled to draw a clear line between retail use and trading activity.
What About Taxes on Staking and Mining Rewards?
Beyond payments, the draft tackles another persistent issue in crypto taxation: the treatment of staking and mining rewards. Under current practice, rewards are often taxed as income at the moment they are received, even if the tokens cannot be easily sold or fluctuate sharply in value. Critics have long referred to this as “phantom income.”
The proposal would allow taxpayers to elect to defer income recognition on staking or mining rewards for up to five years. Instead of being taxed immediately upon receipt, users could wait until a later point, reducing cash-flow pressure and aligning tax liability more closely with economic reality.
“This provision is intended to reflect a necessary compromise between immediate taxation upon dominion & control and full deferral until disposition,” the draft said. The language suggests lawmakers are trying to balance administrative simplicity with the unique mechanics of onchain rewards.
Investor Takeaway
How Broad Is the Proposed Crypto Tax Overhaul?
The draft extends beyond stablecoins and staking. It would apply existing securities-lending tax treatment to certain arrangements, bringing crypto closer to established financial norms. It also applies wash sale rules to actively traded crypto assets, closing a loophole that has drawn scrutiny in recent years.
In addition, traders and dealers would be allowed to elect mark-to-market , a change that could simplify reporting for professional participants while aligning crypto treatment with other actively traded instruments.
Together, these provisions suggest lawmakers are attempting a more comprehensive rewrite of crypto tax rules, rather than addressing individual issues in isolation.
How Does This Fit Into the Broader Stablecoin Debate?
The tax proposal arrives alongside growing tension in Washington over how stablecoins should be regulated. Last week, the Blockchain Association sent a letter to the opposing efforts to extend restrictions on stablecoin rewards to third-party platforms.
Signed by more than 125 crypto companies and industry groups, the letter argued that expanding the GENIUS Act’s limits beyond issuers would stifle competition and favor large incumbents. The group compared stablecoin rewards to incentives offered by banks and credit card companies, warning that banning similar features in crypto would tilt the playing field.
If adopted, the tax exemptions in the Miller–Horsford draft would reinforce the idea that lawmakers view stablecoins not just as financial instruments, but as payment tools that warrant treatment closer to cash than to speculative assets.
The draft is still at an ahead stage, but it signals a shift in tone. Rather than focusing solely on enforcement, lawmakers are beginning to address how crypto is actually used—and how tax rules can either block or support that use.
