New Crypto Tax Legislation Draft Proposes Staking Income Delay and Aggregated Reporting of Digital Asset Transactions
June 5, 2026 — By Chris Cioffi and Caitlin Reilly
In an important development for cryptocurrency taxpayers, the House Ways and Means Committee has introduced discussion drafts of proposed legislation aimed at addressing key issues in the taxation of digital assets. The drafts, recently obtained by Bloomberg Tax, include provisions that would significantly affect how cryptocurrency gains, losses, and income are reported and taxed.
Delay in Taxation of Newly Created Tokens Through Staking and Mining
One of the key proposals would allow taxpayers to delay recognizing newly created digital tokens—whether obtained through mining or staking—as income until the taxpayer actually sells or disposes of those tokens. Currently, the Internal Revenue Service (IRS) requires taxpayers to recognize income at the time the tokens are received through mining or staking activities.
Under the proposed legislation, instead of immediate income recognition, these tokens would be treated similarly to capital assets held by the taxpayer. When sold, any gain or loss from the sale would be included in ordinary income for tax purposes rather than being subjected to capital gains tax treatment. This change aims to simplify reporting and potentially provide tax relief by deferring income recognition until a liquidity event occurs.
Aggregate Reporting of Gains and Losses for Widely Traded Digital Assets
In another notable provision, holders of widely traded digital assets could be allowed to report aggregate gains and losses collectively, rather than accounting for each individual transaction separately. This aggregated approach would simplify tax compliance for investors who engage in numerous trades of popular cryptocurrencies, reducing paperwork and administrative burdens.
Such an aggregate reporting mechanism may enable investors to more easily net losses against gains and carry forward net losses in future tax years, aligning the tax treatment of digital asset transactions more closely with existing frameworks for securities and other financial instruments.
Legislative Background and Next Steps
These discussion drafts are part of ongoing efforts by lawmakers to modernize the tax code in response to the rapid growth of cryptocurrency markets and the increasing number of taxpayers dealing with digital assets. Although currently in draft form and open to amendments, the proposals have been welcomed by many in the crypto community as a step toward clearer, fairer tax policies.
Taxpayers, industry stakeholders, and tax professionals are encouraged to monitor the progress of this legislation closely. Once finalized, the new rules could impact how individuals and institutions report income and capital gains related to digital asset activities such as mining, staking, and trading.
For continued updates and detailed analysis on the evolving digital asset tax landscape, subscription access to Bloomberg Tax resources is available.
For further information or inquiries, contact Bloomberg Tax at pro.bloombergtax.com.