A group of 18 bipartisan US House lawmakers, led by Mike Carey, are urging the IRS to review and update guidance on crypto staking taxes before 2026. They argue that the current laws, which tax stakers upon receiving rewards and again when selling them, hinder participation in the staking market.

Lawmakers are pushing for staking rewards to be taxed at the time of sale to reflect the actual economic gain. They believe the current laws discourage participation in staking, which is crucial for network security and American leadership in digital asset innovation.

In a separate initiative, House representatives Max Miller and Steven Horsford introduced a discussion draft to ease tax obligations on crypto users. They propose exempting small stablecoin transactions from capital gains taxes and offering a deferral option for staking and mining rewards.

Taxpayers would be allowed to defer income recognition on staking or mining rewards for up to five years under the proposal, instead of being taxed immediately upon receiving them. This proposal offers a different approach to addressing the challenges of staking taxes in the US.

Read more at Cointelegraph: US Lawmakers Push IRS to Fix Crypto Staking Tax Before 2026