US lawmakers urge IRS to revise staking tax guidance to prevent double taxation before 2026.
- Lawmakers push IRS to update staking tax rules.
- Prevent double taxation on staking rewards.
- Aims to support blockchain network security.
US Representative Mike Carey and 18 lawmakers urged the IRS to revise 2023 staking reward taxation guidance before 2026 to eliminate double taxation of cryptocurrency staking rewards.
This push could reshape US crypto tax policy, affecting millions of stakers, and may boost the national position in blockchain security and innovation.
US lawmakers led by Rep. Mike Carey urged the IRS on December 19, 2025, to amend the 2023 tax guidance on staking rewards, aiming for changes before 2026.
This legislative push addresses concerns over double taxation on staking, impacting network security and U.S. dominance in the crypto industry.
IRS Urged to Revise 2023 Staking Tax Rules
Lawmakers, with Rep. Carey leading, advised the IRS to revise its 2023 staking taxation rules before the 2026 tax year. These rules currently impose tax both upon receipt and sale of rewards.
Key figures include 18 House members alongside industry leaders. Their primary concern is double taxation, which may undermine U.S. blockchain initiatives and stifle further innovation.
Industry Leaders Demand Fair Staking Tax Policies
Industry figures assert that current tax policies burden blockchain developers. The proposed changes aim to promote equitable treatment for staking, potentially bolstering American crypto leadership globally.
Reforms are expected to reduce compliance burdens, encouraging investment in blockchain networks and enhancing American competitiveness in digital innovation sectors. Miller Whitehouse-Levine, CEO, Solana Policy Institute, said, “Mining and staking are fundamental to securing public blockchains like Solana. The U.S. tax code should encourage this critical infrastructure activity rather than impose unworkable compliance burdens on everyday Americans. We appreciate Representative Carey’s leadership in urging the IRS to heed the Trump Administration’s recommendation and act swiftly to update mining staking tax guidance. Fair taxation isn’t just good policy, it’s essential if America wants to remain the crypto capital of the world.”
2023 IRS Guidance Under Scrutiny
The current situation traces back to a 2023 IRS guidance, which taxed staking rewards similarly to traditional income, unlike newly created property such as mined gold.
Experts predict that a guidance update may bolster network security, align policy with mining taxation principles, and encourage participation from American stakers.
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