According to Cointelegraph: Proposed US Bill Seeks to Change Tax Regulation on Block Rewards
US Representatives Drew Ferguson and Wiley Nickel have introduced the Providing Tax Clarity for Digital Assets Act. The proposed legislation, introduced to the US House of Representatives on April 30, aims to alter the current taxation model regarding Bitcoin (BTC) and cryptocurrency block rewards.
According to the policy outline, staking rewards would be considered as 'created property', resulting in taxation at the point of acquisition. Such an adjustment could greatly simplify America's currently complex taxation system for block rewards.
Representative Ferguson stated: “The United States has long been the leader in innovation and technology yet is falling behind our foreign counterparts in providing tax clarity for the emerging digital asset industry — the United States’ treatment of digital asset rewards is overly complex – leading to confusion by investors, double taxation, and American businesses relocating overseas.”
The bill has been widely endorsed by crypto advocates. Coin Center, a leading crypto advocacy group, praised the “sensible policies” outlined in the bill that would tax block rewards from proof-of-work and proof-of-stake networks when sold or spent, as opposed to when they were acquired.
Sheila Warren, CEO of the Crypto Council for Innovation, agreed, flaming the legislation as “right on point” in delivering necessary guidelines to the crypto space.
The announcement came shortly after the Bitcoin blockchain’s fourth halving event, which resulted in Bitcoin miner rewards dipping from 6.25 BTC to 3.125 BTC per block. Typically, halving events have seen a reduced supply of the cryptocurrency, ultimately driving up the price.