Blockchain Association Seeks Clearer U.S. Crypto Taxes Now
- The paper calls for clear tax rules that reduce friction for everyday digital asset use.
- It also backs privacy safeguards and workable standards for crypto tax reporting.
- The proposal ties tax treatment to true ownership and actual economic change in use.
The Blockchain Association on February 24, 2026, released a formal set of principles guiding U.S. digital asset tax legislation. The document outlines consensus positions on administrability, privacy, global competitiveness, and economic ownership. It calls for clear rules that support compliance while reducing undue burdens on taxpayers.
The association states that tax policy must remain workable for both individuals and the IRS. It argues that digital asset taxation should reflect the realities of modern financial activity. The framework presents ten core principles intended to shape legislation and regulation.
The group also affirms that taxpayers must comply with the law. At the same time, it says they deserve clear tools and predictable standards to meet obligations accurately.
Administrability and Functional Consistency
The association calls for a meaningful de minimis exemption for digital asset transactions. It states that reporting negligible gains from routine transactions imposes disproportionate compliance costs. It adds that billions of low-dollar reports would generate minimal capital gains revenue.
It also proposes that stablecoins should receive cash treatment for tax purposes. According to the document, this change would prevent taxpayers from tracking fractional gains on routine payments. It further recommends removing stablecoins from the digital asset reporting definition under IRS Form 1099-DA.
In addition, the association urges functional consistency across financial products. It argues that similar economic activities should receive similar tax treatment regardless of technical structure. Modernization, it states, ensures certainty as technologies evolve.
The document addresses mining and staking. It describes them as core mechanisms that secure decentralized networks. It proposes taxing rewards upon disposition rather than creation. It also says sourcing should align with the token owner’s residence.
Privacy, Competitiveness, and Anti-Abuse
The association stresses taxpayer privacy within reporting regimes. It warns that applying traditional cash-reporting models to transparent blockchains may create unintended safety risks. It also reiterates that reporting should apply only to intermediaries with custody or control.
Congress previously determined that non-custodial developers and infrastructure participants should not be treated as brokers. The document echoes that position. It frames this limitation as essential to enforcement without overreach.
The group also calls for global competitiveness. It proposes a statutory safe harbor for foreign persons trading digital assets on U.S. exchanges. It states that such alignment would support liquidity and reduce offshore migration.
On anti-abuse measures, the document supports extending wash sale rules to digital assets. Yet it says lawmakers must craft those rules carefully. It recommends exemptions for employees compensated in digital assets and coordination with mark-to-market regimes.
Related: IRS Delays Crypto Tax Rules, Easing Burden on Investors
Economic Ownership and Market Treatment
The association argues that taxation should follow economic substance rather than technical form. It explains that wallet transfers, smart contract interactions, or cross-chain representations often do not change economic exposure. It proposes treating such transactions as nonrecognition events.
Taxation, it states, should apply only when economic position changes. Examples include selling an asset or exchanging it for materially different exposure. This approach aligns tax with realized gain.
The framework also addresses equal access. It calls for clarity that staking does not constitute impermissible business activity within grantor trusts or partnerships. It further supports allowing digital assets in retirement accounts.
The document proposes optional mark-to-market accounting for assets with readily determinable market values. It states that taxpayers should select methods reflecting their economic reality. It also encourages charitable giving without mandatory third-party appraisals for liquid assets.
Finally, the association urges recognition of blockchain development as qualifying research and development activity. It states that clarifying eligibility for R&D tax credits would align incentives with technological advancement.
