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Last week, three leading crypto lobbying organizations — the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber — sent a joint letter to the U.S. House Committee on Ways and Means. Their message was clear and unequivocal: pass H.R. 9175 (Tax Clarity for Mining and Staking Act) in its original version, without any amendments.

The Essence of the Bill: Clarity Instead of Uncertainty

The document, introduced by Congressman Mike Carey on June 8, aims to resolve the issue of taxing mining and staking rewards once and for all. According to the current IRS position, these assets must be included in gross income at their fair market value at the time of receipt. This creates a "phantom income" situation: the taxpayer is required to pay tax on assets they have not yet sold and may not be able to sell at the same price.

H.R. 9175 offers an alternative: allow market participants to account for received tokens under a model similar to self-created property. This means tax would only be levied upon the actual sale of the asset, completely eliminating the risk of taxing unrealized income.

The Horsford Amendment: A Compromise That Tears the Fabric of the Bill

Steven Horsford proposed limiting the tax deferral to five years. If the taxpayer has not sold the asset by the end of the fourth tax year after receipt, they would be required to recognize gain or loss under a deemed sale mechanism. Essentially, this is a forced five-year timer.

Lobbyists are unanimous: such an amendment would "break" the bill. Crypto Council for Innovation CEO Ji Hun Kim directly stated that this turns H.R. 9175 into a five-year forced cycle for rewards, contradicting the very idea of the document. Moreover, the Joint Committee on Taxation estimated the budgetary effect of this amendment at just $101 million over a decade — an amount lobbyists rightly called insignificant compared to the administrative burden on market participants, consultants, and the IRS itself.

Banking Lobby Against: The Old World Defends Its Position

The American Bankers Association (ABA) strongly opposed H.R. 9175, calling it "blatant favoritism" toward digital assets. In their view, a tax preference for crypto yields would create unequal conditions compared to dividends, deposit interest, and other capital income, which are taxed in the current year.

However, the ABA's arguments appear weak against reality. Bank deposits have enjoyed the FDIC insurance system and other advantages for decades that are not available to the crypto sector. The crypto industry is not asking for privileges, but for basic clarity and fairness: not to pay taxes on what has not yet turned into real money.

My Expert Opinion

The situation demonstrates a classic confrontation between the old financial system and the new economy. Banks fear capital outflows, but their concerns are an attempt to maintain a monopoly on savings. The crypto industry, on the other hand, offers a reasonable compromise: give market participants the ability to manage their assets without tax pressure until the point of actual monetization. Passing H.R. 9175 in its original version would set an important precedent, showing whether America is ready for tax modernization rather than protecting outdated models.