Blockchain Association of the United States: Urges Advancement of Bipartisan Digital Asset Tax Legislation

The Blockchain Association stated that it has sent a letter to the leadership of both the House and Senate, urging Congress to advance prudent, bipartisan digital asset tax legislation, and launched TaxClarityforAmerica.com for the public to understand the principles, view congressional progress, and contact legislators. The association noted that approximately 67 million Americans hold and use digital assets, but the current tax system is outdated, leading to uncertainty for taxpayers, excessive compliance burdens, and forcing innovation to move overseas.

Its "Digital Asset Tax Principles" include: a meaningful small exemption; taxation of mining and staking rewards as newly created property upon disposal; reporting arrangements that protect taxpayer privacy; tax compliance based on economic substance rather than technical form; and wash sale rules that do not penalize everyday activities while preventing abuse. The association also mentioned that the House Ways and Means Committee had previously advanced legislation related to digital asset taxation, and Senator Steve Daines has proposed a Senate version. Congress is in recess until after the November 3 elections, but there remains a legislative window during the short session.