Leading cryptocurrency advocacy groups are urging US lawmakers to approve the Tax Clarity for Mining and Staking Act in its current form, arguing that the legislation would finally bring much-needed clarity to how staking and mining rewards are taxed.

The appeal comes from three of the industry’s largest organizations the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber which have jointly asked Congress to avoid adding amendments that could weaken the bill.

Ending Years of Tax Uncertainty

For years, crypto miners and stakers have argued that the existing tax framework is unfair because rewards are often treated as taxable income the moment they are received, even if the assets have not been sold.

Industry groups describe this as a form of “phantom income taxation,” where investors may owe taxes before converting their crypto into cash, potentially creating liquidity problems.

The proposed legislation seeks to address this issue by giving miners and stakers the option to pay taxes:

• When the rewards are received, or
• When the assets are eventually sold.

Supporters say this approach aligns taxation more closely with real economic gains and removes unnecessary financial pressure on network participants.

Crypto Lobby Opposes New Amendments

The bill was recently introduced in Congress but remains under review by the House Ways and Means Committee.

A proposed amendment would limit the tax deferral period for staking and mining rewards to five years. However, crypto advocacy groups argue that such a change would undermine the purpose of the legislation.

Industry representatives say the current version already represents a balanced compromise that protects government tax revenue while supporting blockchain innovation and encouraging more network participation within the United States.

Banks Push Back

The proposal has also faced criticism from the traditional banking sector.

The American Bankers Association (ABA) argues that the bill would give cryptocurrencies preferential tax treatment compared to other investments such as stocks and dividend-paying assets.

According to the banking lobby, shareholders who receive stock dividends are taxed in the year they receive them, and similar principles should apply to crypto rewards.

The crypto industry disagrees, arguing that staking and mining rewards are fundamentally different because they involve creating and securing blockchain networks rather than receiving distributions from a company.

Broader Crypto Tax Reform Under Discussion

The staking and mining bill is part of a broader push for crypto tax reform in the United States.

Lawmakers are also considering the PARITY Act, which would explore tax exemptions for small cryptocurrency transactions and everyday payments.

Industry participants have long argued that taxing every small crypto transaction creates unnecessary complexity and limits adoption. Recent industry data suggests that a large portion of reported crypto transactions involve very small amounts, many worth less than a few dollars.

What Happens Next?

The future of the Tax Clarity for Mining and Staking Act will depend on whether lawmakers can maintain bipartisan support and resist major changes to the bill.

If passed, the legislation could become one of the most significant crypto tax reforms in the US, providing clearer rules for miners and stakers while strengthening America’s position as a hub for blockchain innovation.