A bipartisan group of US lawmakers has urged tax authorities to revise crypto staking rules that they say result in unfair double taxation.
The effort is led by Republican Representative Mike Carey and includes 18 members of the US House of Representatives.
Lawmakers sent a formal letter to Internal Revenue Service acting commissioner Scott Bessent requesting updated guidance before 2026.
The letter argues that current IRS treatment places an unnecessary administrative burden on crypto stakers.
Under existing rules, staking rewards may be taxed when received and again when sold.
Lawmakers said this approach risks taxing unrealised gains that may never materialise.
Carey said the aim is to align taxation with actual economic outcomes for taxpayers.
This letter is simply requesting fair tax treatment for digital assets and ending the double taxation of staking rewards is a big step in the right direction.
Mike Carey said.
The lawmakers proposed that staking rewards should only be taxed at the point of sale.
They argued this would ensure taxes are applied based on realised gains rather than paper income.