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>>Blockchain Association Pushes for Cash-Equivalent Tax Treatment of Stablecoins in a Pivotal 2025 Proposal

Blockchain Association Pushes for Cash-Equivalent Tax Treatment of Stablecoins in a Pivotal 2025 Proposal

crypthub

about 4 hours ago

Proposal Overview

The Blockchain Association has launched a tax reform campaign urging Congress to treat fiat‑backed stablecoins as cash equivalents. The plan aims to relieve taxpayers of capital‑gain calculations on routine crypto payments while preserving traditional financial rules. It arrives amid heightened legislative focus on crypto innovation and competitiveness.

Stablecoin Treatment and Small‑Transaction Exemption

The association argues that 1:1 USD‑pegged stablecoins function like digital cash, making property classification unnecessarily complex. It proposes a de minimis exemption, similar to foreign‑currency rules, for transactions below a set dollar threshold. This would cut compliance costs that often outweigh the tax collected on minor purchases.

Additional Tax Recommendations

Three further measures are suggested: applying the 30‑day wash‑sale rule to crypto to curb loss‑claim abuse, taxing mining and staking rewards as capital gains upon disposal, and embedding these provisions in the CLARITY Act. These steps seek parity with securities tax treatment and clarify ambiguous reward taxation.

Impact and Legislative Context

Experts say the proposals could streamline reporting while maintaining revenue, and they align with international practices in Germany, Portugal, and the EU’s MiCA framework. Implementation would require Treasury guidance for stablecoins and congressional action on exemptions and wash‑sale rules. The timing coincides with broader crypto regulatory debates in Congress and IRS modernization efforts.