US introduces bill to end double taxation on cryptocurrency staking rewards

Two lawmakers in the United States have introduced a bill aimed at providing clarity on the taxation of cryptocurrency staking rewards. The bipartisan bill, called the Providing Tax Clarity for Digital Assets Act, proposes that staking rewards be taxed only at the time of sale to prevent double taxation. It also defines staking rewards as created property under the US tax code. The proposed law is a response to a ruling by the Internal Revenue Service, which stated that crypto investors earning staking rewards must include the value of those rewards in their gross income when filing taxes. The bill has received positive feedback from the cryptocurrency community, with many praising the idea of taxing staking rewards only at the time of sale. The bill is seen as an important step in providing regulatory clarity for digital assets in the US.