A group of 18 bipartisan US lawmakers is pushing to reform the double taxation on cryptocurrency staking. This initiative, led by Republican Mike Carey, seeks to update Internal Revenue Service rules before the start of 2026. Current regulations impose an excessive administrative burden today on participants in decentralized networks. According to official spokespersons, the existing framework unfairly penalizes those who ensure the operation of modern protocols. The goal is to ensure fair and equitable tax treatment for all digital assets within the country.
On the other hand, the proposal requests that taxes be applied only at the time of selling the received assets. Lawmakers argue that the current system taxes unrealized gains unfairly for users across the nation. Likewise, Congressman Mike Carey highlighted that consistent tax treatment is necessary for today’s digital assets. Millions of American citizens own tokens on these security networks that require clear and defined legal support. In this way, it is sought that stakers are taxed based on their actual and tangible economic benefits.
In addition, complementary proposals were presented to exempt small stablecoin transactions from certain specific taxes. Representatives Max Miller and Steven Horsford introduced a discussion draft that includes tax deferral options. This document suggests allowing the deferral of income from mining for a maximum period of five consecutive years. Therefore, it seeks to ease the immediate obligations of taxpayers participating in the ecosystem. Participation in the validation market is being threatened by the complex tax rules that currently govern the sector.
Towards a tax structure that encourages the validation of digital networks
However, the current context shows that IRS rules discourage the security of national blockchain networks. United States competitiveness in digital innovation depends on tax laws that are reasonable and competitive on a global level. Therefore, lawmakers believe that laws must support a fundamental part of the technological infrastructure. Network security requires clear incentives for validators operating with digital assets from within US territory. Since the current system creates unnecessary friction, its update is considered an urgent step forward.
On the other hand, the proposal highlights that staking is essential to maintain the integrity of multiple decentralized protocols. Updating the tax guidance would allow reflecting actual economic gain for investors when liquidating their accumulated rewards. For this reason, removing administrative barriers has become a priority for the current administration looking ahead. US leadership in digital assets needs a regulatory framework that promotes private investment in a sustainable manner. Recognizing these assets as technological infrastructure tools would change the traditional market perception.
Will the new fiscal framework transform the United States into the ultimate crypto leader?
Likewise, the potential impact of these changes could attract a greater flow of institutional capital into the sector. A reduction in tax pressure would encourage greater liquidity within the secondary markets for virtual assets. However, the success of this measure will depend on how quickly the IRS responds to these requests. Investors are closely watching the evolution of these laws to decide their next long-term financial strategies. The cryptocurrency industry awaits a favorable resolution that eliminates operational hurdles before the next fiscal cycle begins.
Finally, future perspectives point to a deeper integration of digital assets into the global traditional economy. Bipartisan support suggests that there is a growing consensus on the strategic importance of decentralized technology. It is also expected that other nations will follow the example of the United States if these reforms are successfully implemented. Strengthening digital infrastructure will be the direct result of much more balanced and modern fiscal policies. The path to 2026 will mark a milestone in the maturation of taxation for digital assets.
