Crypto Tax Reform: The US Industry Unites to Defend Miners and Stakers

For over a decade, American miners and stakers have been subject to a tax rule widely considered absurd: paying taxes on assets they have not yet sold. A new bill could finally change that.

On June 21, 2025, the three largest professional crypto associations in the United States sent a joint letter to Congress calling for the swift passage of the legislation. A rare show of unity, at a moment when the legislative window is closing fast.

Behind this push lies a massive competitiveness issue: proof-of-work and proof-of-stake networks currently secure more than $1.7 trillion in digital assets. And the current tax rules are driving American operators out of the market.

A Tax Regime That Has Been Strangling American Validators Since 2014

It all started in 2014, when the IRS published Notice 2014-21: mined bitcoin must be reported as gross income at its fair market value at the time of receipt — not at the point of sale. In practice, a miner who receives BTC must pay tax immediately, even without selling a single coin. The logic mirrors that of a salary, except that this “salary” can lose 70% of its value before it is ever converted into cash.

In 2023, the IRS made things worse for stakers with Revenue Ruling 2023-14, which extended the same logic to proof-of-stake validators. As soon as a validator receives staking rewards, those rewards must be declared as taxable income — whether sold or not. This mechanism creates a structural cash flow problem: operators must fund a tax liability on illiquid assets, with no guarantee that the value will hold by the time payment is due.

The result: American miners and stakers find themselves competing on an uneven playing field against foreign rivals operating under far more favorable tax regimes. The industry argues that this dynamic discourages domestic validation activity and undermines the digital sovereignty of the United States.

H.R. 9175: A Pragmatic Reform That Gives Taxpayers a Choice

The bill, H.R. 9175 — formally titled the Tax Clarity for Mining and Staking Act and sponsored by Republican Representative Mike Carey (Ohio) — does not eliminate taxation on mining and staking. Instead, it introduces an option: miners and stakers can elect to treat their newly created digital assets as self-created property, deferring the recognition of taxable income until the point of sale. A tax deferral mechanism that aligns with the real economic logic of these activities.

The bill also includes an important technical provision for institutional players: grantor trusts holding digital assets will be able to receive staking rewards without losing their legal status. A critical point for funds and asset management structures that operate through these vehicles.

The joint letter was signed by the CEOs of the Blockchain Association (Summer Mersinger), the Crypto Council for Innovation (Ji Hun Kim), and the Digital Chamber (Cody Carbone). All three organizations describe the bill as a “durable compromise” and are calling for its passage without amendment. On June 9, 2025, the Ways and Means Committee had already held a hearing on digital asset taxation — the first of its kind in years — during which six bills were under review, including H.R. 9175.

A Narrow Legislative Window Before the Momentum Fades

Timing is everything. The US Congress has a limited window before the August recess, and political pressure is mounting. In the Senate, Senator Cynthia Lummis is leading a parallel effort with legislation built on the same principle of deferring taxation until the point of sale — a strategic alignment between both chambers that strengthens the bill’s chances of passing.

The urgency is all the greater given that Lummis, one of the Senate’s most influential voices on digital assets, is leaving office in January. Losing this key ally without securing a tax reform would represent a significant setback for the industry. The united front from the three associations is designed precisely to capitalize on this rare moment of momentum, sending a clear signal to lawmakers: the industry is speaking with one voice, and the bill is ready to be voted on as written.