Nousheen Fahad

📊 #USCryptoStakingTaxReview — 2026 Staking Tax Shake-Up: End Double Taxation Now! U.S. crypto staking tax policy is at a breaking point in late-2025, with bipartisan momentum building to overhaul how staking rewards are taxed before the 2026 tax year. Currently under IRS Revenue Ruling 2023-14, staking rewards are treated as ordinary income at fair-market value when you gain control — even if you don’t sell them. Then, when you later sell those same tokens, you pay capital gains tax again, creating what industry and lawmakers call “double taxation.” This regime has drawn sharp criticism. On December 22, 2025, a bipartisan group of U.S. House members formally urged the IRS to revise or scrap these rules, arguing they impose undue burdens on crypto holders, discourage staking participation, and threaten U.S. leadership in blockchain innovation. They’re pushing for rewards to be taxed only at time of sale, not upon receipt. Alongside political action, the market has seen tax policy shifts like the IRS’ Revenue Procedure 2025-31, which provides a safe harbor enabling certain ETPs to distribute staking rewards without extra tax drag — a boon for institutional investors. Key takeaway: 2026 could be a watershed year for U.S. crypto staking tax rules — moving away from punitive income recognition toward a more growth-friendly, sale-based tax model that boosts compliance, expands network participation, and aligns tax events with real economic gains. 🚀