Blockchain Association pushes for crypto tax clarity as broader bill stalls

As progress stalls on a broader crypto regulation bill, the Blockchain Association is urging Congress to pass legislation to resolve uncertainty around taxes for digital assets.

On Thursday, the crypto industry group, which represents over 100 firms, said current tax policy needs to be updated and is unworkable. The letter was sent to Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, Speaker of the House Mike Johnson and House Minority Leader Hakeem Jeffries. 

"Americans who use digital assets aren't asking for special treatment. They want to follow the law and pay the taxes they owe, but today's rules are often unclear and unworkable," said Lindsay Fraser, chief policy officer of the Blockchain Association.

On the House side, lawmakers have been working on legislation — specifically the Digital Asset Tax Certainty Act, which passed out of the House Ways and Means Committee last month. Overall, the bill sets out to establish clear federal tax rules for digital assets, including setting a threshold for taxes so people would not have to pay taxes on network fees if the fee is $10 or less. That bill isn't expected to be taken back up until after November elections. 

The Blockchain Association pointed to progress made on digital asset legislation, but also said tax regulations are essential. Over the past two years, Congress has been working to pass broader crypto legislation called the Clarity Act, but it has since stalled in the Senate after it failed in its first procedural vote last month. 

"Congress has made progress toward clear rules for digital assets," the group said. "That work cannot fully succeed without a tax framework that is clear, administrable, technology-neutral, and aligned with economic reality." 

Future crypto tax legislation should include a de minimis exemption, should protect taxpayer privacy and should extend wash sale rules to crypto, among other asks, the group said.

"These principles provide a path toward stronger tax compliance, greater certainty for taxpayers and businesses, and a regulatory environment that keeps the next generation of financial innovation – and the jobs it creates – in the United States," Fraser said in the letter.