As congressional momentum behind the crypto market structure bill known as the CLARITY Act slows, the Blockchain Association has stepped forward with its own proposal aimed at shaping the next phase of digital asset regulation in the United States.
On Tuesday, the Washington-based nonprofit — which represents more than 125 crypto companies — released a document titled Digital Asset Tax Principles.
The framework is intended to guide lawmakers as they revisit tax policy for digital assets amid broader regulatory discussions. The association has also participated in White House meetings over the past month related to the CLARITY Act.
Blockchain Association’s Proposal
In announcing the framework, Summer Mersinger, Chief Executive Officer of the Blockchain Association, said lawmakers must ensure that any tax legislation reflects the economic realities of how digital assets function.
She emphasized that tax rules should be practical for both taxpayers and regulators, adding that the group’s recommendations are designed to provide clarity while reinforcing US competitiveness in the global digital economy.
The principles outlined in the document focus heavily on making crypto taxation workable in practice. One major recommendation is the creation of a meaningful de minimis exemption for small digital asset transactions, which would ease compliance burdens for everyday users.
The association also proposes that stablecoins be treated as cash for tax purposes, arguing that such treatment would prevent disproportionate reporting requirements for routine payments.
Another key theme is functional consistency. The group argues that economically similar activities should be taxed similarly, regardless of the technical structure behind them.
For example, it recommends that mining and staking rewards be treated as self-created property, taxable only when the tokens are sold or otherwise disposed of, and sourced to the owner’s residence.
Crypto Tax Plan
The framework also addresses economic ownership, urging lawmakers to allow nonrecognition treatment for transactions that do not materially change a taxpayer’s economic exposure.
In addition, the association highlights privacy and safety concerns, advocating for reporting requirements that achieve legitimate enforcement goals without unnecessarily compromising taxpayer privacy.
Global competitiveness is another pillar of the proposal. The Blockchain Association suggests implementing a safe harbor for foreign individuals trading on US exchanges and adopting policies that encourage digital asset activity to remain onshore rather than move abroad.
It also calls for anti-abuse provisions that close wash sale loopholes while preserving the ability of Americans to use digital assets in everyday transactions. Further recommendations aim to improve access and flexibility within the tax system.
Currently, the Internal Revenue Service (IRS) classifies crypto as property rather than currency. As a result, most crypto-related activity falls into one of two categories: capital gains or ordinary income.
Featured image from OpenArt, chart from TradingView.com
