Blockchain Association Urges Congress to Advance Digital Asset Tax Legislation
The Blockchain Association has stated that it has written to the leadership of both the House and Senate, urging Congress to advance prudent, bipartisan digital asset tax legislation. They have launched TaxClarityforAmerica.com to inform the public about principles, track congressional progress, and contact legislators.
The association claims that approximately 67 million Americans hold and use digital assets, but the current tax system is outdated, leading to taxpayer uncertainty, excessive compliance burdens, and forcing innovation to shift overseas.
Their "Digital Asset Tax Principles" include meaningful small exemptions, taxing mining and staking rewards as newly created property upon disposal, reporting arrangements that protect taxpayer privacy, tax compliance based on economic substance rather than technical form, and wash sale rules that do not penalize everyday activities while preventing abuse.
The association also noted that the House Ways and Means Committee has previously advanced digital asset tax-related bills, and Senator Steve Daines has proposed a Senate version.
Congress is in recess until after the November 3 elections, but there remains a legislative window during the short session.
The association is promoting bipartisan legislation through letters and the launch of the website, covering specific principles such as small exemptions, timing of staking taxation, and privacy reporting.
Driven by legislative advancement, capital and compliance resources are flowing into U.S. digital asset activities, benefiting holders and related platforms from potential increases in certainty, while offshore innovation paths are pressured under tax uncertainty.
Source: Public Information
ABAB AI Insight
The Blockchain Association has previously written to Congress multiple times regarding digital asset regulation and released principle documents to promote a compliance framework from state to federal levels, forming a path for industry associations to coordinate legislative windows, including public statements on spot ETFs and stablecoin-related rules.
This letter to both chambers of Congress and the launch of TaxClarityforAmerica.com, while listing principles such as small exemptions and taxation of staking rewards upon disposal, aims to reduce the compliance burden for approximately 67 million holders and decrease innovation outflow.
Similar cases include the Securities Industry Association pushing for capital market tax reform and the crypto industry lobbying for compliance under the EU MiCA framework; currently, there is a transition phase from the old tax system to exclusive legislative control for digital assets.
Essentially, this is a regulatory change, with the tax system shifting from being oriented towards old-era assets to defining digital assets based on economic substance. The mechanism is to increase the probability of legislation through bipartisan windows and public principles, shifting pricing power from uncertain compliance costs to predictable tax rules.
ABAB News · Cognitive Law
- Tax uncertainty drives innovation outflow
- Economic substance takes precedence over technical form
- Short session window determines legislative pace