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Proposed U.S. Crypto Tax Legislation After ASU 2023-08

In recent years, codification surrounding the accounting treatment of crypto and other digital assets has become clearer, largely thanks to guidance from the Financial Accounting Standards Board (FASB). Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets (ASU 2023-08), addressed key accounting and disclosure requirements for the emerging digital asset industry.

While accounting clarity has arrived, tax clarity has not, particularly regarding U.S. crypto tax treatment and crypto reporting requirements. Organizations such as FASB have provided established guidance, but others, namely the Internal Revenue Service (IRS), are expected to address changes to tax treatment and potential reporting requirements for cryptocurrency. House representatives have returned from their holiday recess with a focus on enacting legislation by late summer to clarify how the tax code will treat the trade and/or creation of digital assets.

Crypto advocates have long sought assistance from policymakers to achieve greater clarity from the IRS. Members of Congress, including those on the tax-writing House Ways and Means Committee, have signaled interest in simplification and clarity—most recently at the Blockchain Association’s policy summit in December 2025. Both the crypto industry and bipartisan supporters agree that adapting the tax code to provide a comprehensive and durable approach is essential.

Proposed U.S. Crypto Tax Changes

The expected legislation aims to address several hotly debated topics, including:

What Does the De Minimis Exception Mean for Crypto Holders and Businesses?

Industry leaders have advocated for a de minimis exception for everyday crypto transactions, such as small purchases or fees tied to larger transactions. The goal: exempt certain transactions from taxation to encourage broader adoption of digital currencies and reduce reporting burdens. Leading proposals suggest:

• $200 limit per transaction (value and total gain)
• $5,000 annual cap

The $200 limit would apply to dollar-pegged stablecoins with capital gains of less than $200 but would not provide a similar safe harbor for other cryptocurrencies. 

Without such a rule, taxpayers could face the impractical task of tracking billions of microtransactions. However, some lawmakers oppose the concepts of de minimis-type exceptions, citing concerns that they could enable criminal activity or unfairly subsidize the industry.

Fair Value Complexities

Draft proposals indicate that cryptocurrency traders may be able to use mark-to-market accounting, which would require a taxpayer to recognize unrealized gains and losses based on the fair market value of securities at the end of each tax year. 

Taxpayers could benefit from using these methods by allowing deductions for trading losses from income derived from other sources.

Tax Treatment of Crypto Staking Rewards

Another major flashpoint is staking rewards. Bipartisan proposals may seek to tax staking rewards at the point of sale rather than gross ordinary income under current rules. Advocates hope this change will incentivize investment in crypto markets through exchange-traded products without requiring direct ownership of digital currencies.

Lawmakers acknowledge that while simplicity is the goal, it may not be the ultimate outcome. Those earning staking rewards should prepare for a shifting landscape.

U.S. Crypto Tax Legislation

As of now, legislation remains in development, balancing taxpayer reporting burdens with the need to regulate an emerging industry. Until clarity arrives, lawmakers fear that complexity and unclear guidance are only a benefit for those trying to exploit the tax code.

How Centri Can Help

With the potential for a changing tax landscape surrounding digital assets, the time to discuss the future of your business and how these pending changes will impact you is now. Our dedicated, skilled professionals collaborate with international and domestic token issuers, digital asset exchanges (including decentralized finance platforms), venture capital, miners, media, blockchain and enterprise platforms, and other leaders in the fintech space. This allows us to find solutions for your unique accounting and tax needs. Please contact us to explore how our expertise aligns with the specific needs of your company.

Rich Petillo

Partner | Tax Advisory Practice Leader | CPA

Rich is a Partner at Centri Business Consulting and a leader of the firm’s Tax Advisory Practice. With over 15 years of public accounting experience, Rich specializes in ASC 740, Accounting for Income Taxes, advising both public and private companies on complex tax provision matters. He joined Centri in November 2025 and has extensive experience in annual and quarterly income tax accounting, valuation allowance assessments, uncertain tax position analyses, and global effective tax rate management.. . View Rich Petillo's Full Bio

Mike Andrusko

Partner | Fintech and Digital Assets Practice Leader | CPA

Michael is a Partner at Centri Business Consulting and the leader of the firm’s Fintech and Digital Asset Practices. He has more than 13 years of experience in the accounting treatment of various transactions, including complex debt and equity analysis, business combinations and acquisition accounting process integration. View Mike Andrusko's Full Bio