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    You are at:Home » Focus » Legal & Compliance » US Congress plans tax safe harbor for stablecoins and staking
    US Congress plans tax safe harbor for stablecoins and staking

    US Congress plans tax safe harbor for stablecoins and staking

    By Editorial Office CVJ.CH on 22. December 2025 Legal & Compliance

    In the US House of Representatives, two bipartisan lawmakers have introduced a draft for a new tax framework for cryptocurrencies. The proposal includes, among other things, tax relief for certain stablecoin transactions and a redefinition of how staking rewards are taxed.

    The draft introduces a so-called safe harbor rule for small stablecoin payments, under which transactions involving regulated, dollar-pegged stablecoins below a certain threshold would not be subject to capital gains tax. At the same time, the proposal allows for the deferral of taxation on staking and mining rewards, permitting taxable income to be assessed at a later point in time.

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    Safe harbor for stablecoin transactions

    At the core of the proposal is a tax exemption for regulated stablecoin payments that do not exceed a fixed threshold amount. According to Bloomberg, payments made with certain federally approved dollar stablecoins of up to around 200 US dollars would be exempt from capital gains tax. This would simplify everyday digital payments - for example for goods or services - from a tax perspective, as currently every movement of a crypto token can theoretically trigger a taxable gain or loss. This threshold is modeled on comparable tax rules in the traditional foreign exchange market.

    Safe harbor status would be subject to several conditions: the stablecoin must be issued by a regulator-approved issuer and must remain stably pegged to the US dollar over an extended period, for example under the framework of the GENIUS Act, which established a more comprehensive legal framework for stablecoins in 2025.

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    Reclassification of the taxation of staking rewards

    Another key element of the proposal concerns the tax treatment of rewards from staking and mining. Currently, such rewards in the US are often considered taxable income at the time they are credited, even if recipients have not sold or realized them. This leads to complex calculations and liquidity constraints, as taxes become due before any sale proceeds are generated.

    The new draft proposes that taxpayers be given the option to defer taxation of such rewards until they actually gain economic control and disposal over the assets - for example upon sale or a later transaction. Some versions of the proposal provide for a deferral period of up to five years. This rule would give network validators, developers, and DeFi participants greater planning certainty.

    Context within the broader legislative framework

    The initiative comes at a time when the US Congress is increasingly working on establishing a more comprehensive regulatory framework for digital assets. A broader draft aimed at defining the market structure for cryptocurrencies - including the delineation of jurisdiction between the SEC and the CFTC - is planned for early 2026. Together with the safe harbor proposal, this could form a more coherent foundation for the everyday use of digital assets.

    While the current draft is still considered a discussion paper and has not yet been enacted into law, it is regarded as one of the most concrete examples to date of how the US Congress is seeking to reduce tax-related barriers to cryptocurrencies and integrate stable digital payment instruments into the mainstream.

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    About the author

    Editorial Office CVJ.CH
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    Since 2018, the editorial team at Crypto Valley Journal has been reporting from Zug - the heart of Switzerland’s Crypto Valley - on Bitcoin, cryptocurrency, blockchain, and regulatory developments in digital assets. Behind the publication’s collective editorial voice is a team of writers with backgrounds in financial markets, law, and technology.

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