Clarifying Crypto Tax: Digital Asset Rewards Taxed Only Upon Sale.
This bill changes how rewards received from blockchain consensus mechanisms (like mining or staking) are taxed. Under the new rules, citizens will not owe income tax when they first receive these digital assets. Tax liability will only arise when the assets are sold or otherwise disposed of, simplifying compliance and deferring tax obligations.
Key points
Digital asset rewards (e.g., from mining or staking) are no longer treated as income at the moment of acquisition.
Tax on these rewards is paid only when the assets are sold or exchanged, deferring the tax event.
The changes apply to taxable years beginning after December 31, 2023.
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