Blockchain Association urges Congress to ease crypto tax rules for 67M holders

Legislative push for tax clarity

The Blockchain Association (BA) has formally requested that the U.S. Congress introduce more transparent and equitable tax regulations for cryptocurrencies. In a letter dated October 22, 2026, addressed to leaders in both the Senate and the House, the trade group outlined a set of Digital Asset Tax Principles designed to address the regulatory uncertainty currently affecting the sector.

The organization stated that current regulations impose unnecessary compliance burdens and create significant uncertainty for an estimated 67 million Americans who hold and use digital assets. The BA is calling for bipartisan legislation that aligns with the functional reality of digital assets as they operate today.

Specific tax proposals

The letter details several specific mechanisms intended to simplify the tax code for digital asset users. The BA is seeking a meaningful “de minimis” exemption, which would simplify tax obligations for small crypto transactions. Additionally, the group proposed cash-like tax treatment for stablecoins, a category of digital assets designed to maintain a stable value.

Regarding income generation, the BA proposed that mining and staking rewards be taxed only when they are sold or disposed of, rather than at the point of initial receipt. This shift would align the tax timeline with the point of liquidity for many users. The association also advocated for extending wash-sale rules to crypto assets to prevent investors from claiming artificial losses.

On the reporting side, the BA wants broker reporting requirements to apply strictly to intermediaries that maintain custody or control over customer assets. Under this proposal, non-custodial developers and infrastructure providers would be excluded from these reporting mandates to protect user privacy. The group further suggested preventing tax events from being triggered when users transfer assets between their own wallets or interact with smart contracts, provided that the underlying economic ownership does not change.

Broader market and regulatory context

Beyond individual tax treatment, the BA’s letter includes recommendations aimed at broader market participation. The group recommends allowing crypto investments in retirement accounts and clarifying staking rules for trusts and other investment vehicles. It also proposes permitting mark-to-market accounting for eligible digital assets and simplifying the process for charitable donations of regularly traded cryptocurrencies.

The BA argues that recognizing blockchain development as eligible research and development activity for tax credits would further support the industry. It also advocates for a statutory safe harbor for foreign investors trading digital assets on U.S. exchanges. The association contends that clearer tax rules could attract liquidity, encourage businesses to remain in the United States, and prevent innovation from moving offshore.

These proposals are currently recommendations that require legislative action to take effect. To support this effort, the BA launched the website TaxClarityforAmerica.com to encourage Americans to contact their elected representatives. Coinbase’s Chief Product Officer applauded the move by the Blockchain Association.

Regulatory developments

In parallel with its congressional advocacy, the BA submitted a comment letter to the U.S. Treasury regarding proposed regulations for the GENIUS Act. In that submission, the group warned against imposing excessive compliance burdens on crypto firms, exchanges, and decentralized finance (DeFi) platforms.

The push for clearer rules comes as federal regulatory structures continue to evolve. The U.S. Commodity Futures Trading Commission (CFTC), led by Chairman Michael Selig, has indicated plans to bring more of the crypto market under a unified federal framework. This regulatory push follows the failure of the CLARITY Act to advance in September.