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Donald Trump · Bitcoin · U.S. · US Congress · CLARITY Act ·

Trump’s Bitcoin made in America push runs into a power problem the tax bill cannot fix

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A five-step diagram contrasts current IRS treatment of staking rewards as taxable upon receipt with H.R. 9175's proposed deferral of tax recognition until tokens are sold or disposed of.

Congress is moving to fix how the US tax code treats crypto mining and staking rewards, and for validators and their institutional clients, the fix is long overdue.

Key facts

Summary

01 Congress is considering H.R. 9175, which would let miners and stakers defer tax on newly minted tokens until sale. 02 The change would ease cash-flow pressure for U.S.-based validators and institutional clients, reducing incentives to structure offshore. 03 Bitcoin miners say the bill does not fix power, land, permits, or grid access, so the next buildout decision stays infrastructure-driven. H.R. 9175, the Tax Clarity for Mining and Staking Act, would let miners and stakers defer tax on newly minted tokens until they sell them, ending a cash-flow penalty that has pushed validation infrastructure and its largest clients toward offshore jurisdictions with clearer rules.

Read full article at CryptoSlate →

#US Congress #Donald Trump #Bitcoin #U.S. #CLARITY Act