Sen. Todd Young Pushes IRS to Rethink Crypto Staking Tax Rules
U.S. Senator Todd Young from Indiana is calling on the IRS to take another look at the Biden-era tax rules for crypto staking rewards. Staking is when people lock up their digital assets to help keep a blockchain running, and in return, they earn rewards.
Right now, the IRS taxes those staking rewards as soon as people receive them, even if they haven’t sold anything yet. Many crypto holders say this creates confusion and forces them to pay taxes on income they haven’t actually cashed out.
According to Bloomberg, Senator Young has asked Treasury Secretary Scott Bessent—who is also serving as the acting IRS commissioner—to review the 2023 guidance. He says the current rule causes uncertainty for taxpayers and makes revenue forecasting harder when Congress writes new laws.
Young sits on the Senate Finance Committee, and his comments are adding more pressure from lawmakers and digital asset supporters who want the IRS to reconsider how staking rewards are taxed.
IRS Moves Toward Global Crypto Reporting Standards
This debate comes just as the IRS is trying to tighten its rules on crypto oversight.
Last week, the agency sent the White House a proposal to implement the Crypto-Asset Reporting Framework (CARF). CARF is a global standard that would give the IRS access to information about U.S. taxpayers who hold crypto on foreign exchanges.
If approved, the U.S. would join 72 other countries by 2028 in adopting this international reporting system.
CARF was introduced by the OECD in 2022 and is designed to help countries share crypto data and crack down on tax evasion. The rollout is expected to start in 2027, and more than 50 countries—including Japan, Germany, and the U.K.—are already preparing to use it.
The IRS says adopting CARF would help close loopholes and make it harder for people to hide crypto gains offshore.
