US lawmakers propose bill to exempt block rewards from acquisition taxation

Two U.S. lawmakers have unveiled a new bill aimed at providing clarity on the taxation of Bitcoin and crypto miners’ block rewards. Representatives Drew Ferguson and Wiley Nickel introduced the Providing Tax Clarity for Digital Assets Act to the House of Representatives. The proposed legislation would categorize staking rewards as created property under U.S. tax code, with taxes on block rewards being collected upon acquisition. The bill aims to address the complexity surrounding the treatment of digital asset rewards, which has led to confusion, double taxation, and businesses relocating overseas. Crypto advocacy group Coin Center praised the bill for its sensible policies, while the CEO of the Crypto Council for Innovation emphasized the need for guidance. The legislation comes shortly after the Bitcoin miner rewards were reduced from 6.25 BTC to 3.125 BTC per block following the fourth halving event. Halvings historically reduce the new supply of Bitcoin, leading to price surges. At the time of writing, Bitcoin was valued at $58,030, having dropped around 11% since the halving on April 19.