New Game in U.S. Cryptocurrency Taxation: Blockchain Association Proposes Tax Exemption for Stablecoins and Small Transactions, Warren Strongly Opposes
On February 25, the main lobbying organization for the cryptocurrency industry in the United States, the Blockchain Association, submitted a cryptocurrency tax reform proposal to Congress and met with House members in an effort to influence the development of crypto tax laws by 2026. The proposal focuses on key issues such as stablecoin taxation, small crypto transaction tax exemptions, and rules for wash sales of digital assets.
According to the policy document released by the Blockchain Association, it advocates treating stablecoins as cash for everyday payments to reduce the tax complexity of routine spending. The association also recommends establishing a minimum exemption for “small” crypto transactions, arguing that reporting tiny gains or losses on each transaction increases taxpayers’ costs and burdens the IRS, with limited actual tax revenue contribution.
Regarding capital market rules, the organization supports applying wash sale rules to digital assets, allowing investors to claim capital losses even if they buy back the same asset after selling at a loss. Additionally, the Blockchain Association explicitly states that income from mining and staking should be taxed under capital gains tax rules rather than ordinary income rates.
Senator Cynthia Lummis, a Republican, previously proposed a crypto tax bill that included some exemptions for small transactions, but it faced strong opposition from Democratic Senator Elizabeth Warren. Warren argued that allowing tax-free crypto transactions under $300 could reduce federal revenue by approximately $5.8 billion and questioned why crypto assets should receive different tax treatment than gold or stocks.
Currently, the U.S. Congress is engaged in debates over digital asset tax regulation, stablecoin compliance frameworks, and investor reporting obligations. Market participants believe that the direction of crypto tax policies will directly impact the innovation environment and capital flows in the U.S. digital asset sector, making it a key issue on the 2026 regulatory agenda.
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