As Congressional momentum behind the crypto market structure bill known as the CLARITY Act slows, the Blockchain Association has moved forward with its proposal aimed at shaping the next phase of digital asset regulation in the United States.
On Tuesday, the Washington-based non-profit organization – which represents more than 125 crypto companies – released a document titled Digital Asset Tax Principles.
The framework is intended to guide lawmakers as they revisit digital goods tax policy amid broader regulatory discussions. The association still has it participate at White House meetings last month related to the CLEAR Act.
Blockchain Association proposal
In he announced framework, Summer Mersinger, Chief Executive Officer of the Blockchain Association, said lawmakers must ensure that any tax law reflects the economic realities of how digital assets work.
He stressed that the tax rules should apply to both taxpayers and regulators, adding that the group’s recommendations are designed to provide clarity while strengthening US competitiveness in the global digital economy.
The principles outlined in the document are mainly focused on making crypto taxation work in practice. One major recommendation is the creation of a meaningful de minimis exemption for minorities digital asset transactionswhich can make compliance easier for everyday users.
The organization also proposes that stablecoins be treated as cash for tax purposes, arguing that such treatment would prevent disproportionate reporting requirements for standard payments.
Another key theme is consistency of performance. The group says that similar economic activities should be taxed the same, regardless of the technical structure behind them.
For example, it recommends that mining and staking rewards be treated as personal property, taxed only when the tokens are sold or otherwise disposed of, and located in the owner’s residence.
Crypto Tax Plan
The framework also addresses economic ownership, urging lawmakers to allow discretionary treatment of activities that do not materially change the taxpayer’s situation. economic exposure.
In addition, the organization highlights privacy and security concerns, advocating for reporting requirements that meet statutory enforcement goals without unnecessarily jeopardizing taxpayer privacy.
Global competitiveness is another pillar of the proposal. The Blockchain Association suggests implementing a safe harbor for foreign trades on US exchanges and adopting policies that encourage digital asset activity to stay offshore rather than move overseas.
It also calls for restrictive anti-harassment provisions wash the sales vents while maintaining the ability of Americans to use digital assets in everyday activities. Other recommendations aim to improve access and flexibility within the tax system.
Currently, the Internal Revenue Service (IRS) classifies crypto as an asset rather than a currency. As a result, most crypto-related work falls into one of two categories: capital gains or regular income.
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