US lawmakers introduced a discussion proposal that eases the burden of taxes on ordinary crypto users. Small stablecoin transactions would be exempt from capital gain tax and there will also be a new option to defer staking or mining rewards.
It was introduced by Max Miller from Ohio and Steven Horsford from Nevada. The draft is set to be published on the first day of the month. This draft has been set “to eliminate low-value gain recognition arising from routine consumer payment use of regulated payment stablecoins,” The draft.
Users would not have to report gains or loss on transactions of stablecoins up to a maximum value of $200 provided that the asset was issued by an approved issuer. the GENIUS ActIt is pegged at the US dollar, and has a trading range that stays around $1.
This bill contains safeguards against abuse. Brokers and dealers will be exempted from this benefit if stablecoins trade outside a limited price band. Treasury will also be able to set anti-abuse regulations and report requirements.
Related: Crypto Biz: Bank stablecoins get a rulebook; Bitcoin gets a land grab
US bill delays taxes on crypto-staking rewards
This proposal addresses concerns that go beyond payment. “phantom income” Staking and mining. The tax payers would have the option to choose to delay income recognition for a maximum of five years on rewards from staking and mining, instead of being taxed at receipt.
“This provision is intended to reflect a necessary compromise between immediate taxation upon dominion & control and full deferral until disposition,” It said that the draft.
The draft bill also applies wash sales rules to active crypto assets and gives traders the option to mark digital assets to market.
Related: Galaxy predicts stablecoins will overtake ACH transaction volume in 2026
Crypto groups call on Senate to reconsider the ban on stablecoins
The Blockchain Association held a meeting last week. sent a letter to the US Senate Banking CommitteeSigned by over 125 cryptocurrency companies and industry associations, the letter opposes efforts to restrict stablecoin reward programs to third-party platforms.
The group argued expanding the GENIUS Act beyond stablecoin issues would reduce innovation and favor large incumbents. The letter made comparisons between crypto rewards and incentives offered by banks or credit card companies. It warned that prohibiting similar features in stablecoins could undermine competition.
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Source: cointelegraph.com
