Blockchain Association urges House Ways and Means Committee to pass Tax Clarity for Mining and Staking Act
The Blockchain Association and a coalition of digital asset trade groups are urging the House Ways and Means Committee to pass the Tax Clarity for Mining and Staking Act (H.R. 9175). Introduced by Rep. Mike Carey on June 8, 2026, the bill would allow taxpayers to defer income taxes on mining and staking rewards until the assets are sold or disposed of, rather than paying upon receipt.
How does the Tax Clarity for Mining and Staking Act change crypto taxes?
The legislation shifts the taxable event from the moment of acquisition to the moment of sale. Under current IRS guidelines, taxpayers must include staking and mining rewards in their gross income the instant they gain control over the tokens. The Tax Clarity for Mining and Staking Act would treat these rewards as “self-created property,” delaying tax liability until a disposal event occurs.
Once sold, these rewards would be classified as ordinary income. This change removes the requirement to track the fair market value of every single reward token at the exact second it hits a digital wallet.
Why is the Blockchain Association pushing for H.R. 9175?
Industry groups argue the current system creates “phantom income” and severe cash flow problems. The Blockchain Association and three allied trade groups sent a formal advocacy letter to the House Ways and Means Committee around June 21, 2026, to maintain pressure on the legislation following a June 9 committee hearing.
Chairman Jason Smith has expressed support for the bill, citing existing conflicts in tax laws that create heavy compliance burdens for blockchain participants. During the June 9 hearing, industry representatives, including Coinbase’s tax VP, provided testimony on the practical difficulties of the current regime.
The “Phantom Income” Problem: A Real-World Example
Consider a staker who receives tokens valued at $10 each. Under current rules, they owe taxes on that $10 immediately. If the token price crashes to $2 before the staker sells, they’ve paid taxes on value they never actually realized. While they could eventually claim a capital loss, the immediate tax bill creates a liquidity crunch.
What happens to institutional investors and grantor trusts?
The bill provides specific protections for grantor trusts that engage in staking. Many institutional investment vehicles use grantor trust structures to manage assets. Currently, ambiguity exists regarding whether staking activities could jeopardize the tax status of these trusts.
H.R. 9175 would explicitly protect the tax status of these entities. According to the bill’s framework, this ensures that institutions can use staking as a yield strategy without risking unexpected tax complications or legal uncertainty for their allocators.
Current IRS Rules vs. Proposed Tax Clarity Act
The following comparison highlights the shift in tax timing and classification proposed by Rep. Mike Carey:
| Feature | Current IRS Guideline | H.R. 9175 Proposal |
|---|---|---|
| Taxable Event | Moment of control/receipt | Moment of sale/disposal |
| Income Type | Gross Income | Ordinary Income (at sale) |
| Trust Status | Ambiguous for staking | Protected for grantor trusts |
Frequently Asked Questions
When would I pay taxes under the new bill?
You would pay taxes only when you sell or otherwise dispose of the tokens earned through mining or staking.
Does this bill apply to all crypto assets?
The bill specifically targets rewards earned through blockchain validation, such as mining and staking, rather than assets purchased on an exchange.
Is the Tax Clarity for Mining and Staking Act already law?
No. It was introduced as H.R. 9175 on June 8, 2026, and is currently under consideration by the House Ways and Means Committee.
Want to stay updated on crypto tax legislation?
Join our newsletter for real-time alerts on bills that affect your portfolio or leave a comment below to tell us how the current staking tax rules impact your strategy.