A U.S. crypto policy group is pushing lawmakers to reshape how digital assets are taxed, arguing that existing rules create unnecessary reporting burdens for everyday users while leaving key areas of the industry without clear treatment.
The proposals arrive as Congress continues work on crypto legislation that could define how digital assets are taxed, reported and regulated in the United States.
Industry group outlines tax changes
The Blockchain Association released a set of policy recommendations this week and confirmed it has met with House lawmakers involved in drafting a crypto tax bill.
Among the group’s central proposals is treating stablecoins as cash equivalents when used for routine purchases and introducing a de minimis exemption for small crypto transactions.
According to the organization, the current reporting framework forces users to track minor gains or losses even in everyday payments.
“Tax reporting for negligible gains or losses from routine transactions imposes disproportionate costs on individuals and overwhelms tax administration without meaningful revenue upside,” the group said in its policy statement.
The association also backed applying wash-sale rules to digital assets. Under such rules, investors would be prevented from claiming losses if they repurchase the same asset within a defined period.
Lawmakers are still debating whether crypto assets should follow the same tax treatment used for stocks and other financial instruments.
Mining and staking taxation proposal
Another key recommendation concerns how mining and staking rewards are taxed.
The Blockchain Association argues that newly created tokens should be treated as self-created property and taxed only when they are sold or otherwise disposed of, rather than when they are received.
Industry participants have long argued that taxing rewards at the moment of creation creates accounting complications, especially when token prices fluctuate.
The group also said digital-asset tax reporting rules should protect taxpayer privacy while still allowing authorities to investigate illicit activity linked to cryptocurrencies.
Earlier this month, the organization said it also met with White House officials to discuss market structure legislation that includes provisions related to stablecoin rewards.
1/ Blockchain Association’s Capitol Hill Tax Fly-In continues as BA members meet directly with two dozen House Ways & Means offices and participate in a policy lunch briefing.
— Blockchain Association (@BlockchainAssn) February 24, 2026
Thank you to our participating members:@a16zcrypto@Anchorage@coinbase@Consensys@cryptocom@DCGco… pic.twitter.com/ftJZPg2Fxh
Blockchain Association's X Announcement.
Political divide over crypto tax exemptions
Debate over crypto taxation has already drawn clear political lines in Washington.
Republican Senator Cynthia Lummis introduced legislation in July that included exemptions for certain crypto transactions. Some of the proposals align with recommendations made by the Blockchain Association.
“In order to maintain our competitive edge, we must change our tax code to embrace our digital economy, not burden digital asset users,” said Lummis.
Democratic Senator Elizabeth Warren has opposed several of those ideas, particularly the proposed exemption for smaller transactions.
Warren argued the measure could reduce federal revenue by about $5.8 billion and questioned why crypto trades should be treated differently from other assets.
“If someone bought $300 worth of gold, or $300 worth of Apple stock, would they be required to report any income they made from those transactions?” she said.
Tax policy becoming a global focus
While U.S. lawmakers debate new rules, other jurisdictions are also reconsidering how digital assets should be taxed and classified.
In Japan, regulators are preparing reforms that would change how major cryptocurrencies are treated under financial law and could reduce tax rates applied to crypto gains. Officials have indicated that the changes may begin taking shape in 2026, part of a broader plan to integrate digital assets into existing financial frameworks.
Governments in several countries are reviewing whether tax rules designed for traditional assets remain suitable for crypto markets that operate continuously and involve frequent transactions.
Oleksii Shumak
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