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U.S. Senators Urge IRS to Reassess Tax Policy on Crypto Assets Staking Rewards
ChainCatcher news, Indiana Republican Senator Todd Young wrote to Treasury Secretary Scott Betts, urging the IRS to reevaluate and reconsider the 2023 guidance on the tax treatment of Crypto Assets stake rewards. As a member of the Senate Finance Committee, Senator Young questioned the rationale of the current regulations requiring Crypto Assets holders to pay taxes when they “receive” stake rewards, rather than when they “sell” them. Staking refers to the process where Crypto Assets holders lock their assets to support the operation of the Blockchain network and validate transactions. Betts currently also serves as the Acting Commissioner of the IRS, giving him direct oversight of this policy.