The shift in U.S. cryptocurrency regulation towards institutionalization: from pure enforcement to structural reform

Source: TokenPost Original Title: Staking Taxation and Payment Account Reform… US Cryptocurrency Regulation Moving Beyond Enforcement to Institutionalization Original Link:

A Major Turning Point in the US Cryptocurrency Regulatory Environment

The US cryptocurrency regulatory environment is experiencing a significant turning point. From disputes over staking taxation to the Federal Reserve’s payment system reforms, the focus is shifting from purely enforcement to structural institutional discussions.

Reignited Attention on Staking Tax Issues

18 bipartisan members of the House of Representatives have sent a letter to the Internal Revenue Service (IRS), urging a reevaluation of the tax treatment of staking rewards. They point out that the current approach is unfavorable to the market and constitutes “double taxation.”

Under current tax law interpretations, rewards earned from staking cryptocurrencies are taxed at market value upon receipt, and then taxed again on the profit difference when sold. This method fails to reflect the high volatility characteristic of the cryptocurrency market, leading investors to bear excessive tax burdens.

Republican Congressman Mike Carey, who led the letter, emphasized: “This letter only requests fair tax treatment for digital assets. Changing the reward income to be taxed only upon sale is the first step toward improving tax clarity and reasonableness.”

Staking is at the core of the Proof of Stake (PoS) mechanism and is vital for expanding blockchain participation. Reasonable tax standards will influence the entire industry.

Federal Reserve Advances “Payment Dedicated Account” System

The Federal Reserve announced a new type of central bank account plan and solicited public opinions. This initiative aims to go beyond the traditional banking system, enabling fintech and cryptocurrency payment companies to access the payment system in a more restricted manner.

Through the “payment account” model, the Fed is exploring the possibility for companies that do not engage in traditional banking activities such as deposit-taking or lending to connect to the Federal Reserve’s payment network. This reflects the need for flexible restructuring of financial infrastructure driven by AI-powered payment systems and tokenized payment clearing infrastructure expansion.

The Federal Reserve will seek formal feedback within the next 45 days. The proposal will operate alongside the existing main account system, opening new opportunities for cryptocurrency and fintech companies.

SEC Continues Crackdown on Fake Cryptocurrency Scams

The US Securities and Exchange Commission (SEC) has conducted large-scale enforcement against organizations impersonating fake cryptocurrency exchanges and AI investment clubs. According to the SEC, organizations like Morocoin Tech and Berge Blockchain have used social media and messaging apps to lure investors into nonexistent products, illegally raising funds.

Victims amount to approximately $14 million, and the SEC classifies this case as “trust abuse investment fraud.” This indicates that while the cryptocurrency industry needs institutionalization, some malicious actors continue to exploit AI and digital assets concepts to commit scams.

The SEC enforces strict penalties in the name of consumer protection, serving as a basis for regulatory rationality.

Arizona Attempts State-Level Cryptocurrency Tax Incentives

At the state level, Arizona is promoting legislation for a crypto-friendly tax system. Led by State Senator Wendy Rogers, the bill includes exemptions of virtual currencies from certain state taxes and prohibits local governments from charging blockchain node operators.

One bill fully exempts virtual currency assets from state taxation, while another proposes property tax exemptions for crypto assets, aiming for a constitutional amendment approved by voters in November 2026.

However, considering Arizona’s current flat income tax rate of 2.5% and an average transaction tax of 8.5%, fully implementing “tax exemptions” is expected to face significant fiscal and political obstacles.

US Cryptocurrency Regulation Evolves Between Institutionalization and Flexibility

This week’s policy updates indicate that cryptocurrency regulation is shifting from purely enforcement-focused to long-term institutional discussions involving taxation, payment systems, and consumer protection. Especially as staking and token payments gradually integrate into the financial system, governments and regulators can no longer rely solely on ad hoc measures.

It is expected that these discussions will deepen further during the 2026 US presidential election and changes in Congress.