Blockchain Association urges crypto tax overhaul

Blockchain Association has submitted a set of crypto tax policy proposals to Congress, calling for a de minimis exemption on low-dollar digital asset transactions and for stablecoins to be treated as cash for everyday purchases.

The group argued that reporting “negligible gains or losses from routine transactions imposes disproportionate costs on individuals and overwhelms tax administration without meaningful revenue upside,” as lawmakers continue drafting crypto tax legislation.

The association also said it supports applying wash-sale rules to digital assets and backs taxing mining and staking rewards under capital gains frameworks.

The proposals come amid debate over a crypto tax bill introduced by Cynthia Lummis, which would exempt certain small crypto transactions from taxation and has drawn opposition from Elizabeth Warren.

Warren criticised the de minimis proposal, arguing it could cost the US $5.8 billion and questioning whether similar exemptions would apply to gold or Apple stock transactions.

The Blockchain Association said crypto tax reporting should protect taxpayer privacy while enabling enforcement against illicit activity, as it continues engaging lawmakers and White House officials on broader market structure and stablecoin legislation.