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House Republicans have removed a proposal that would let crypto miners and stakers defer tax on newly created rewards from a 114-page digital asset tax bill headed for committee review on Sept. 16. The omission leaves current rules on when those rewards become taxable unchanged.
The Ways and Means Committee will consider H.R. 10357, the Digital Asset Tax Certainty Act, at a 10 a.m. markup. The bill still contains two sections addressing mining and staking, but neither changes the timing of income recognition.
Reward Tax Deferral Disappears From 114-Page Bill
An earlier proposal from Rep. Mike Carey would have allowed taxpayers to elect to treat newly minted mining and staking rewards similarly to self-created property. That approach could postpone income recognition rather than taxing rewards when a taxpayer gains control of them.
The provision drew disagreement during the committee’s June work on digital asset taxation. A Democratic amendment proposed limiting any deferral election to five years. Neither the original timing election nor that five-year limit appears in H.R. 10357.
Mining and Staking Provisions Remain in H.R. 10357
The package does not remove mining and staking tax provisions entirely. Section 401 sets rules for determining where income from digital asset validation activities is sourced and treats that income as ordinary income.
Section 402 addresses investment trusts that engage in digital asset staking. Other parts of the bill cover $10 de minimis network and transaction fees, stablecoin transactions, digital asset lending, wash-sale rules, charitable donations, broker requirements and a voluntary disclosure program.
Existing Reward Tax Timing Remains Unchanged
IRS guidance treats mining rewards as income when a taxpayer obtains dominion and control. Its staking guidance likewise requires cash-method taxpayers to include the fair market value of staking rewards in income once they can sell, exchange or otherwise dispose of the tokens.
A June Tax Court decision also found staking rewards taxable when received, rejecting an argument that they should be treated as self-created property and taxed only after disposition.
The Sept. 16 markup gives committee members another opportunity to amend H.R. 10357. If the bill ultimately becomes law without further changes, miners and stakers would receive new tax provisions without the reward-deferral option proposed earlier this year.
