The US crypto advocacy group Blockchain Association has presented its cryptocurrency tax proposals to Congress and held meetings with House lawmakers drafting digital asset tax legislation, aiming to influence one of the industry’s key policy priorities.
On Tuesday, the group released its formal tax policy recommendations, urging that stablecoins be treated as cash when used for everyday purchases and calling for a de minimis exemption for small-value crypto transactions.
The association argued that requiring tax reporting on minimal gains or losses from routine transactions places an unfair burden on individuals and strains tax authorities without generating meaningful additional revenue.
It also expressed support for applying wash-sale rules to digital assets, a move that would allow investors to claim losses on crypto sales even if they repurchase the same asset shortly afterward.
The push comes as lawmakers continue debating how cryptocurrencies should be taxed. In July, Republican Senator Cynthia Lummis introduced legislation to exempt certain crypto transactions from taxation, a proposal that drew criticism from Democratic Senator Elizabeth Warren.
The Blockchain Association said digital asset tax reporting rules should protect taxpayer privacy while still allowing authorities to effectively combat illicit crypto activity.
The group also stated that mining and staking activities should be taxed under capital gains rules. Earlier this month, it met with White House officials to push forward market structure legislation that includes favorable provisions for stablecoin rewards.
Warren pushes back on proposed crypto measures
Several elements of Republican Senator Cynthia Lummis’ crypto tax bill aligned with the Blockchain Association’s recommendations. However, the proposals faced sharp criticism from Democratic Senator Elizabeth Warren in October.
Warren argued that the proposed de minimis tax exemption could cost the US government $5.8 billion in lost revenue. She also criticized a provision that would allow investors to avoid reporting income on crypto transactions under $300.
“If someone bought $300 worth of gold, or $300 worth of Apple stock, would they be required to report any income they made from those transactions?” she said.
