U.S. Crypto Lobby Group Advocates for Tax Reforms in Congress

A U.S. crypto lobby group has presented its tax policy positions to Congress, aiming to influence how cryptocurrency should be taxed. According to Cointelegraph, the Blockchain Association has engaged with House lawmakers who are working on a crypto tax bill, seeking to shape one of the industry's key policy priorities. The Blockchain Association released its crypto tax policy positions on Tuesday, advocating for stablecoins to be treated as cash for regular purchases and proposing a de minimis tax exemption for low-value crypto transactions. The group argued that tax reporting for minor gains or losses from routine transactions imposes excessive costs on individuals and burdens tax administration without generating significant revenue. Additionally, the lobby supports applying wash sale rules to digital assets, allowing investors to claim losses on sales even if they repurchase the same cryptocurrency. These efforts by the Blockchain Association come amid ongoing debates among lawmakers regarding the taxation of cryptocurrencies. Republican Senator Cynthia Lummis introduced a bill in July to exempt certain crypto transactions from taxes, which faced opposition from Democratic Senator Elizabeth Warren. The Blockchain Association emphasized that tax reporting for digital assets should protect taxpayer privacy while ensuring effective enforcement against illicit crypto activities. It also suggested that mining or staking activities should be subject to capital gains tax. Earlier this month, the organization met with White House officials to promote market structure legislation that includes favorable provisions for stablecoin rewards. Warren has expressed strong opposition to the proposed crypto tax laws, particularly the de minimis exception proposal, which she argued would cost the U.S. $5.8 billion. She criticized a proposal allowing crypto investors to avoid reporting income from transactions under $300, questioning whether similar exemptions would apply to other assets like gold or Apple stock.