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According to the source, the Trump crypto tax bill passed Congress but failed to deliver the expected tax relief for cryptocurrency holders.
While the legislation includes broad tax cuts and raises the national debt ceiling, proposed reforms to how staking and mining income is taxed were removed from the final version. Crypto earners must continue reporting rewards as income under existing IRS rules.
Proposed Crypto Tax Breaks Removed
Passed on July 3, the Trump crypto tax bill is part of a broader package aimed at addressing government spending and preventing a fiscal crisis. It includes changes to corporate and personal tax rates but omits the crypto-specific tax reforms that were initially discussed.
Earlier versions had proposed allowing taxpayers to defer taxes on staking and mining income until the crypto was sold or exchanged, similar to stocks under capital gains rules. Supporters indeed argued that this alignment of crypto with traditional investments was beneficial. However, final negotiations dropped these provisions at that time.
As a result, crypto rewards from network activities, such as staking and mining, remain taxable upon receipt.
What Does This Mean for Stakers and Miners?
Under current IRS rules, staking and mining rewards are taxed as ordinary income based on their market value when earned. Stakers help secure networks by locking crypto, while miners validate transactions using computing power.
Since the Trump crypto tax bill didn’t change these rules, users still face immediate tax obligations even if they don’t sell their assets. This remains a challenge, especially during market downturns. Hopes for tax relief stay on hold for now.
Market Impacts of the Bill
The passage of the Trump crypto tax bill prompted larger economic changes. This is apart from the effects of crypto. It is expected that the U.S. Treasury will issue substantial amounts of new debt to replenish its cash reserves. This will be done through the action of raising the debt ceiling. Some analysts suggest that $500 billion could leave financial markets.
Arthur Hayes, co-founder of BitMEX, suggested about this liquidity drain. Cryptocurrency could gain from this situation. He believes capital may flow into Bitcoin, as well as into other digital assets since traditional assets are becoming less appealing. Hayes speculated Bitcoin could even climb back toward the $90,000 range.
Analysts still do not all agree. Due to tighter liquidity and new economic signals, some people expect short-term volatility as markets adjust.
Regulation: Still in Flux
Regulators focus more on digital assets, so this bill arrives. By the Trump administration, the IRS’s DeFi broker rule, which increased reporting requirements for decentralized platforms, was repealed earlier in 2025.
Stablecoin regulators should act now despite the absence of legislation. Legislators still discuss poise amid change. They also consider how to stabilize finances.
Even though this tax bill excluded crypto-specific reforms, some lawmakers have indicated crypto tax updates might appear in the event future legislation ties into finance or digital asset policy.
What Crypto Investors Should Do Now?
Under current IRS rules, the Trump crypto tax bill has not made any changes, so users must still report all income received from staking, mining, and airdrops.
To remain compliant, investors should:
- Document the date, amount, and fair market value of each reward at receipt.
- Watch for updates on the status of crypto tax regulations.
- Be aware of how broader market liquidity may impact crypto prices.
- Compliance will be the name of the game till Congress passes actual reforms to tax it.
Conclusion
The Trump crypto tax bill brought broad tax cuts and raised the federal borrowing limit but left crypto users without any relief. Staking and mining rewards remain taxable as income when received, which is disappointing to many.
Although lawmakers may not have time to reform crypto tax laws this session, future sessions may address the topic. Meanwhile, users should comply, keep track of their earnings carefully, and watch for updates.
Summary
The Trump crypto tax bill passed Congress without the much-anticipated changes to staking and mining income. Despite hopes for tax relief, current IRS rules remain unchanged; crypto rewards must still be reported as income when received. The bill may impact market liquidity and prices, but the key is that users must stay compliant and follow updates as they occur. Reforms could still come, but this round brought no relief for crypto holders.
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Frequently Asked Questions
What does the Trump crypto tax bill entail?
The tax and spending package passed in July 2025 excluded the proposed changes for crypto taxation.
Was there any change in staking or mining taxation?
No. Crypto rewards are still considered income and must be reported upon receipt.
Could the bill influence the prices of cryptocurrencies?
It’s possible. Some analysts speculate a liquidity squeeze could increase demand for Bitcoin.
Is there a possibility of more crypto tax reforms?
As lawmakers might introduce updates through future legislation.
Glossary
Staking: A blockchain network is where crypto is locked to earn rewards
Mining: Using computational power to validate transactions on a blockchain
Debt ceiling: The legal limit on how much debt the U.S. is allowed to carry
Defi: Decentralized financial ties built on the blockchain
IRS: A U.S. federal agency responsible for tax collection and tax law enforcement.
Sources/References
