Senate Republican Presses IRS on Tax Treatment of Crypto Staking

Senator Todd Young is urging the IRS to review and reconsider earlier guidelines on the tax treatment of rewards cryptocurrency owners collect in exchange for “staking,” or locking assets on a blockchain network to aid its operation and validate transactions.

The Indiana Republican, who sits on the powerful Senate Finance Committee with jurisdiction over the IRS, sent a letter Tuesday to Treasury Secretary Scott Bessent urging review of 2023 guidelines that tax cryptocurrency owners on the rewards they receive for staking digital assets when they receive them, rather than when they sell them. Bessent also serves as acting IRS commissioner. ...