Congress Gets a Blockchain Memo: 67 Million Users, One Tax-Reform Push

The Blockchain Association has called on the United States Congress to overhaul cryptocurrency tax provisions, arguing that existing rules create unnecessary compliance burdens for the 67 million Americans who hold or use digital assets. In a letter representing more than 100 members, the association demanded bipartisan bills covering stablecoins, staking, mining and cryptocurrency transactions.

The group’s proposals would exempt smaller crypto transactions and treat stablecoins like cash. It also seeks to reduce Form 1099-DA reporting requirements and restrict broker reporting to parties that hold or control customer assets. Non-custodial software developers and blockchain infrastructure providers would be excluded from any tax solution under the framework, while tax-enforcement obligations would remain in place.

The Blockchain Association also called for taxation of staking rewards upon disposal and broader tax reforms covering mining. Its proposals aim to simplify reporting, clarify the tax treatment of digital assets and protect non-custodial developers and blockchain infrastructure providers.

The initiative follows discussions by the House Ways and Means Committee in September about modifying cryptocurrency reporting requirements and the handling of digital asset transactions. The association said the proposed changes would also support continued crypto investment in the United States.