US lawmakers propose tax breaks for crypto users to ease burden. The draft bill exempts small stablecoin transactions from capital gains taxes and offers a deferral option for staking and mining rewards. Safeguards in place to prevent abuse, with exemptions for stablecoins within a tight price range and exclusion of brokers from benefits.

Taxpayers can defer income recognition on staking and mining rewards for up to five years. Proposal aims to address concerns around “phantom income” from crypto activities. Existing securities lending tax treatment extended to digital asset lending arrangements, wash sale rules applied to actively traded crypto assets, and mark-to-market accounting allowed for traders and dealers.

Crypto groups push Senate to reconsider banning stablecoin rewards on third-party platforms. More than 125 companies and industry groups oppose extending restrictions, warning it could stifle innovation and concentrate the market in favor of large incumbents. Comparison made to incentives offered by banks and credit card companies, urging fair competition.

Read more at Cointelegraph: US Lawmakers Propose Stablecoin Tax Break, Staking Reward Deferral