US House committee drafts bills to end double tax on crypto mining, staking

The U.S. House Ways and Means Committee has released draft proposals for seven bills aimed at overhauling the Internal Revenue Service's (IRS) framework for cryptocurrency taxation, CoinDesk reported. A central pillar of the legislation is to ease the tax burden on virtual asset mining and staking rewards. The crypto industry has long opposed the IRS's policy of double taxation, where assets are taxed once upon acquisition as unrealized gains and again upon their sale. The drafts include provisions to significantly reduce this burden or eliminate taxation at the point of acquisition. Additionally, the proposals aim to do away with capital gains taxes on minor asset value fluctuations that occur during small transactions, such as buying a coffee, sending small amounts of stablecoins, or paying network gas fees. The 'wash sale' rule from traditional securities markets, which prohibits artificially creating tax losses by selling an asset and immediately rebuying it, is also planned to be applied to virtual assets. As CoinNess previously reported, the committee was expected to release the seven crypto tax bills as early as Friday, U.S. time.