Miller-Horsford Proposes Legislation for Capital Gains Exemption on Regulated Stablecoin Transactions Below $200

Proposed Legislation: Representatives Max Miller and Steven Horsford have drafted legislation to align cryptocurrency tax treatment with traditional securities, proposing exemptions for certain stablecoin transactions and establishing safe harbors for staking rewards.

Tax Exemptions: The draft legislation suggests exempting capital gains tax on transactions involving regulated stablecoins within a specific value range and allows taxpayers to defer taxes on staking rewards for up to five years.

Bipartisan Efforts: Miller emphasizes the need for the tax code to adapt to modern financial technology, aiming to provide clarity and fairness in digital asset taxation amidst ongoing disputes over how staking and mining rewards should be taxed.

Additional Provisions: The proposal includes capital gains tax exemptions for foreign investors trading U.S. securities and allows mark-to-market accounting for traders to recognize unrealized gains and losses based on fair market value.