GoToMars

🚨 MARKET ALERT: US Crypto Staking Tax Overhaul – Are Your Rewards About to Be Taxed Differently? 🚨 Major shifts are happening in Washington! The debate over #USCryptoStakingTaxReview has reached a boiling point as 2025 comes to a close. Lawmakers and industry leaders are pushing for a radical change in how your staking rewards are treated. 🏛️⚖️ If you are a staker or a validator, here is the breakdown of the current rules vs. the potential future: 📊 The Current Reality (IRS Rules) Tax Status: Staking rewards are currently treated as ordinary income. 📉 Timing: Taxed at the exact moment you gain "dominion and control" (when they hit your wallet). Compliance: Exchanges are now rolling out Form 1099-DA to report 2025 transactions directly to the IRS. 📝 🔍 The "Tax When Sold" Debate Critics and the Proof of Stake Alliance (POSA) argue that staking rewards are like "newly created property" (like a farmer's crop or a writer’s manuscript). 🌾✍️ ⚡ What’s Changing? (Dec 2025 Updates) Bipartisan Action: A new bipartisan House bill (Dec 22, 2025) is proposing a Safe Harbor for staking, aiming to delay taxation until the "realization" of gains. 🤝 Institutional Shift: On Nov 10, the IRS released Rev. Proc. 2025-31, allowing crypto ETPs and Trusts to stake assets safely without losing their tax status. This is a huge win for institutional liquidity! 🏦🔓 💡 Strategic Strategy Note If the "tax when sold" model is adopted, it could unleash a wave of new capital into staking protocols. For now, meticulous record-keeping is your best friend. Ensure you track the USD value of every reward epoch to stay compliant while the rules are being reshaped. 🧠📊 Action Plan: ✅ Consult with a crypto tax pro—2025 is a "transition year" for reporting. ✅ Keep a close eye on the Jarrett vs. IRS court case developments. ✅ Monitor the legislative progress of the new Staking Safe Harbor bill. ⚡️ #USCryptoStakingTaxReview #IRS #CryptoTax #StakingRewards