The Blockchain Association (BA) is urging Congressional leaders to advance digital asset tax legislation that is grounded in the association’s Digital Asset Tax Principles.
In a letter to Senate Majority Leader John Thune (R-SD), Senate Minority Leader Chuck Schumer (D-NY), House Speaker Mike Johnson (R-LA), and House Minority Leader Hakeem Jeffries (D-NY), the association outlined its Digital Asset Tax Principles, a framework developed with input from its more than 100 members. The principles emphasize:
- Administrability and Practicality – a meaningful exemption for small digital asset transactions and treating stablecoins as cash for tax purposes.
- Functional Consistency – treating economically similar activities consistently, including taxing mining and staking rewards as self-created property upon disposition.
- Economic Ownership – nonrecognition treatment for transactions that do not alter economic exposure.
- Privacy and Safety – reporting requirements that protect taxpayer privacy while achieving legitimate enforcement goals.
- Global Competitiveness – a safe harbor for foreign persons trading on U.S. exchanges and policies that support onshoring.
- Anti-Abuse – closing wash sale gaps while preserving everyday digital asset use.
- Equal Access, Market-Based Treatment, and Workability – retirement account access, optional mark-to-market accounting, and charitable contributions without unnecessary appraisal burdens.
- Pro-Innovation – recognizing blockchain development as qualifying technological advancement for R&D tax credits.
The association points out that 67 million Americans hold and use digital assets, yet the tax rules that govern them were written for a different era. The uncertainty makes it difficult for taxpayers to understand their obligations. The letter, signed by BA Chief Policy Officer Lindsay Fraser, urges congressional leadership to ensure any legislation reflects economic reality and remains workable for taxpayers and the IRS.
“Americans who use digital assets aren’t asking for special treatment. They want to follow the law and pay the taxes they owe, but today’s rules are often unclear and unworkable,” Lindsay Fraser, chief policy officer of Blockchain Association, said. “Congress has a real bipartisan opportunity to modernize digital asset tax policy and establish clear, practical rules that reflect how Americans actually use this technology. Our principles offer a practical foundation for getting it right, and TaxClarityforAmerica.com gives the Americans affected by these rules a simple way to make their voices heard.”
The association also launched TaxClarityforAmerica.com, a new advocacy website that provides tools to learn about digital asset tax policy and contact their members of Congress directly.