Crypto Group Proposes Tax Rules To Boost Innovation As CLARITY Act Talks Progress

The Blockchain Association released a detailed crypto tax rules framework in Washington during its Capitol Hill Tax Fly-In. Members met with roughly two dozen House Ways and Means Committee offices to press for legislative reforms. According to the group, the proposal aims to modernize digital asset taxation as the CLARITY Act talks move forward in Congress.

Crypto Tax Rules Framework and CLARITY Act Progress

According to the association, the Digital Asset Tax Principles aim to modernize crypto tax rules while grounding reforms in operational experience. The framework stresses administrability, economic ownership, and functional consistency across mining and staking. 

The association’s crypto tax rules principles are focused strictly on tax administration. The framework calls for a meaningful de minimis exemption for small transactions. It also proposes treating stablecoins as cash for tax purposes and excluding them from Form 1099-DA reporting. 

On stablecoins, as Coingape reported, on Friday, the White House sought to break the stablecoin impasse tied to the CLARITY Act. Patrick Witt outlined a separate compromise after a closed-door session with industry and bank leaders. According to the Blockchain Association, such changes would reduce billions of low-value reporting obligations.

Lawmakers Pressed On Practical Digital Assets

According to the CEO of the Blockchain Association, Summer Mersinger, Congress must ensure crypto tax rules policy reflects economic reality and remains workable for taxpayers and regulators. She previously testified before the House Ways and Means Committee on digital asset taxation. The group now urges lawmakers to rely on established tax principles when drafting reforms.

Chief Policy Officer Lindsay Fraser said the recommendations reflect how blockchain networks operate in practice. The framework treats mining and staking rewards as self-created property taxable upon disposition. It also sources those rewards to the token owner’s residence.

Further, the proposal emphasizes nonrecognition treatment for transactions that do not alter economic exposure. Transfers between wallets that a user controls would not trigger taxable events. Similarly, protocol migrations or certain smart contract interactions would qualify for nonrecognition.

The document also addresses global competitiveness and anti-abuse rules. It recommends a statutory safe harbor for foreign persons trading on U.S. exchanges. At the same time, it supports closing wash sale gaps without disadvantaging digital assets.

Additionally, the framework calls for equal access within retirement accounts and optional mark-to-market accounting. It supports charitable contributions of digital assets without unnecessary appraisal burdens. It also seeks explicit recognition of blockchain development for R&D tax credits.

Senate Roundtable On Crypto Taxes Postponed

While industry groups advanced proposals, a separate Senate roundtable on crypto tax rules policies did not proceed as planned. Senators Cynthia Lummis and Steve Daines, alongside Representative Mike Carey, had scheduled a closed-door discussion. Organizers postponed the session due to bad weather in Washington, D.C.

Journalist Eleanor Terret indicated they would reschedule the meeting soon. The roundtable aimed to examine existing U.S. tax treatment of transactions, staking, mining, and small-scale activity. 

Lawmakers also planned to explore legislative reforms to improve clarity and fairness. Cynthia Lummis supports digital assets and fair crypto tax rules, emphasizing the need to update the tax code to embrace the digital economy rather than hinder it, arguing that regulatory clarity is essential for America to maintain its competitive edge in blockchain and cryptocurrency. The Pro-crypto Senator had earlier this month revealed that the Senate Majority Leader John Thune had pledged to schedule floor time for the CLARITY Act. 

Meanwhile, last year, in July 2025, Lummis introduced comprehensive digital asset tax legislation (S. 2207) that proposes practical reforms, including a de minimis exemption for small transactions, deferral of income from mining and staking until sale, and extensions of wash-sale and lending rules to bring fairness and certainty to the sector.