Bill would set tax rules for crypto mining and staking rewards

What This Bill Does

The Tax Clarity for Mining and Staking Act would amend the Internal Revenue Code to create specific tax rules for digital assets received through mining or staking. In general, it would require taxpayers to include the fair market value of newly minted digital assets in gross income when they acquire them, and it would let some taxpayers elect to defer that income and instead capitalize certain acquisition costs. The bill also sets special rules for partnerships, S corporations, foreign entities, and certain trusts that hold these assets. It is aimed mainly at people and businesses involved in validating digital asset transactions, including miners, stakers, and some investment-trust structures.

• Newly minted digital assets would be included in gross income as ordinary income when acquired, at fair market value.
• Taxpayers could elect to defer income on qualified newly minted digital assets under section 1400W-2.
• Specified acquisition costs are generally not capitalized unless Treasury allows an exception tied to financial-statement treatment.
• The election would apply at the partnership or S corporation level.
• The bill excludes controlled foreign corporations, passive foreign investment companies, and some foreign trusts from the election.

Who This Bill Affects

If you mine or stake digital assets, this bill would directly affect when you owe tax and how you calculate basis. By default, newly minted digital assets would be taxed as ordinary income when acquired, but eligible taxpayers could elect to defer that income and capitalize specified acquisition costs, which may help with timing but also adds recordkeeping and later tax consequences on sale. For people who do not participate in crypto validation activities, the bill would have little direct day-to-day effect.

Who Supports & Opposes This

Key Implications

• ““the fair market value of such asset shall be included in the taxpayer’s gross income as ordinary income””

  This means mining or staking rewards would generally be taxed when received, not only when sold. For people who receive tokens but keep them, the tax bill could arrive before any cash is realized.

• ““all qualified newly minted digital assets… shall not be included in the taxpayer’s gross income””

  This is the core of the optional deferral election. Eligible taxpayers could postpone income recognition on qualifying assets, but they would then face later gain recognition when the asset is disposed of.

• ““specified acquisition costs shall be treated as an expense which is not chargeable to capital account””

  The bill generally prevents miners and stakers from adding certain acquisition costs to basis, unless Treasury creates a financial-statement-based exception. That affects how much taxable gain or deductible expense is recognized later.

• ““the election under this section shall be made at the partnership or S corporation level””

  This pushes the choice up to the entity level rather than leaving each owner to decide separately. For pass-through businesses, that can simplify administration but also limits individual flexibility.

• ““the taxpayer indefinitely ceases all activities related to the validation of digital assets (including staking and mining)””

  Treasury must write rules for taxpayers who stop mining or staking altogether. That suggests special treatment for leftover costs that were not allocated to qualifying assets before the activity ended.

Latest Status

June 8, 2026

Referred to the House Committee on Ways and Means.