New crypto tax rules? Ripple & Coinbase Push 14 Major Reforms

New crypto tax rules? Ripple & Coinbase Push 14 Major Reforms

Blockchain Association unveils 14-point crypto tax plan before Congress, backed by Ripple, Coinbase and Kraken.

The Blockchain Association has released a 14-point tax framework for digital assets to Congress, backed by major crypto companies including Ripple, Coinbase and Kraken.

The proposal is intended to provide guidance to lawmakers as they continue discussions with House tax writers.

Industry Group publishes 14-point tax framework

The Blockchain Association represents more than 100 member companies in the digital property sector.

Members include Ripple, Coinbase, Kraken and other US-based crypto companies. The group said the framework was developed in coordination with its broad membership.

The document outlines Digital Asset Tax principles intended to help Congress update current tax treatment.

The association stated that the goal is to provide clarity and consistency to digital asset users and businesses.

Industry representatives are meeting directly with House tax writers as part of ongoing policy discussions.

The release of the framework coincides with those meetings in Washington, DC

De Minimis exemption and tax treatment of strikes

One proposal calls for a clear de minimis exemption for small crypto transactions.

Under this approach, small purchases of digital assets would not trigger taxable events. Proponents claim this would simplify the everyday use of crypto for payments.

Another recommendation is about staking and mining rewards.

The framework proposes that rewards should only be taxed when they are sold, and not when they are received. This approach would align taxation with realized profits.

The association also proposes treating stablecoins more like cash rather than property.

Current tax rules often classify digital assets as property, which can create reporting requirements for routine transactions.

Related reading: Coinbase CEO sees a win-win path for crypto banks and US consumers

Reporting rules and developer scope

The framework proposes to limit tax reporting obligations to custody intermediaries.

It states that open source developers and non-custodial software vendors should not be subject to broker-style reporting rules.

The proposal aims to clarify the scope of the responsible entities.

The association said its recommendations are intended to reflect how blockchain networks work.

That was noticed decentralized systems involving multiple participants with different roles and responsibilities.

Lawmakers continue to evaluate tax policies on digital assets as cryptocurrency adoption increases.

The 14-point framework is intended as a reference during the drafting of legislation.

Discussions are still ongoing between industry leaders and congressional tax writers.


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