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A coalition of 18 U.S. House lawmakers, led by Rep. Mike Carey (R-Ohio-15), is pressing the IRS to revise its guidance on the taxation of cryptocurrency staking rewards before the 2026 tax year. The current policy, established under Revenue Ruling 2023-14, taxes staking rewards both when received and upon sale, which lawmakers argue is burdensome and discourages participation in blockchain networks. Carey said: "Taxing staking rewards at the time of their sale is critical to ensuring that stakers are taxed based on a correct statement of their actual economic gain." The letter to IRS Acting Commissioner Scott Bessent seeks to align tax treatment with technological realities, potentially impacting millions of American crypto holders.
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