April 30, 2024 – The Proof of Stake Alliance (POSA), a leading blockchain industry association, applauds the introduction of H.R. 8149, the Providing Tax Clarity for Digital Assets Act, bipartisan legislation led by Representatives Drew Ferguson (R-GA) and Wiley Nickel (D-NC) to codify the fair tax treatment of digital asset mining and staking.  

This common-sense clarification of existing law confirms that taxpayers are not improperly taxed on their staking or mining rewards, and ensures that tax compliance is administratively feasible for the millions of Americans who participate in these networks.

The bill promotes tax fairness and compliance by confirming that block rewards are taxed only at the time of their sale or exchange – rather than taxed twice, first when they are acquired and then again at the time of disposition.

The bill eliminates overtaxation, ensures consistent capital gain and loss tax treatment, reduces harm from liquidity constraints, and brings certainty to taxpayers. 

“We commend Representatives Drew Ferguson and Wiley Nickel for their leadership on this important issue affecting millions of taxpayers who are participating in blockchain ecosystems,” said Alison Mangiero, Executive Director of the Proof of Stake Alliance (POSA). “By reinforcing existing law, this legislation will ease tax compliance, ensure taxation is fair, and bring peace of mind to the millions of Americans engaging with digital assets. We urge Congress to act swiftly to pass this critical piece of legislation.”

The Proof of Stake Alliance is an action-oriented, nonprofit industry alliance advocating for forward-thinking public policies that foster innovation in rapidly growing, sustainable, multi-billion dollar proof-of-stake ecosystems. Since its creation in 2019, POSA has brought together industry leaders and legal experts to fight for fair regulation that allows proof-of-stake ecosystems to flourish. It has led the fight for the fair taxation of staking rewards, see more here.

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Bill text here.