Three of the largest crypto policy groups sent a joint letter to the House Ways and Means Committee this week. The letter, dated June 21, 2026, asks Chairman Jason Smith to pass H.R. 9175 without changes. The Blockchain Association, The Digital Chamber, and the Crypto Council for Innovation signed the document. Rep. Mike Carey (R-OH) introduced the underlying bill, called the Tax Clarity for Mining and Staking Act. As a result, the coalition now wants lawmakers to accept the text in its current form.
The groups argue that the bill reflects months of careful negotiation across industry and congressional staff. In their view, reopening the language could collapse a fragile bipartisan understanding. Summer Mersinger leads the Blockchain Association. Cody Carbone runs the Digital Chamber, and Ji Hun Kim heads the Crypto Council for Innovation. Together, they represent miners, validators, exchanges, and major Layer-1 ecosystems. Their unified push signals that the industry sees this bill as its best near-term tax fix.
Today, the CEOs of the @Blockchainassn @Crypto_Council and @DigitalChamber sent a letter urging the House Ways and Means Committee to pass @RepMikeCarey’s H.R. 9175, the Tax Clarity for Mining and Staking Act, as introduced.
— Blockchain Association (@BlockchainAssn) June 22, 2026
For years, miners and stakers have faced uncertainty… pic.twitter.com/hOiSkDj5ov
What H.R. 9175 Actually Does
H.R. 9175 changes how the federal government taxes new mining and staking rewards. Today, the IRS treats those rewards as ordinary income at the moment a validator or miner gains control. Carey’s bill keeps the ordinary income classification, however it adds a critical election. Taxpayers could choose to defer recognition until they sell or exchange the rewarded assets. In practical terms, validators would owe tax when they monetize tokens, not when the network mints them.
The bill also clears up a separate question around grantor trusts holding digital assets. Current rules leave open whether those trusts risk their tax status by accepting staking rewards. H.R. 9175 confirms that they do not, which matters for funds, ETFs, and custody structures. Additionally, the measure aligns the treatment with how the tax code already handles other forms of self-created property. The Ways and Means Committee held a full hearing on the bill on June 9, 2026.
The Phantom Income Problem
The coalition’s central argument focuses on what tax professionals call phantom income. Under existing IRS guidance, a validator owes tax based on the value of rewards at the moment of receipt. However, the validator may never sell those tokens at that price. If the market drops sharply, the tax bill can exceed the actual cash value of the rewards. Meanwhile, smaller miners and stakers often lack the liquidity to cover those bills.
IRS Notice 2014-21 set this framework for mining more than a decade ago. The IRS then issued Revenue Ruling 2023-14, which extended the same approach to staking rewards. Together, those documents force participants to track fair market values constantly. The coalition says this creates compliance traps that push validators offshore. Carey himself raised these concerns in a December 2025 letter to Acting IRS Commissioner Scott Bessent.
Why the Coalition Opposes Reopening the Text
Rep. Steven Horsford (D-NV) introduced an amendment during the June 9 hearing. His proposal would cap the deferral election at five years, rather than allow indefinite deferral until sale. The coalition letter rejects that change, citing the bill’s existing concessions on character and timing. The signatories note that H.R. 9175 already confirms ordinary income treatment, which preserves federal revenue. As a result, they view the five-year cap as a redundant constraint that breaks the compromise.
The letter also stresses that proof-of-work and proof-of-stake networks now secure more than $1.7 trillion in digital assets. Validators and miners need predictable rules to keep that activity within U.S. borders. In contrast, jurisdictions like Switzerland and Singapore already offer clearer tax frameworks. The groups warn that further edits could delay the bill past this Congress. Importantly, they argue that the negotiated text reflects months of input from Treasury staff, lawmakers, and industry counsel.
A Broader Digital Asset Tax Package
H.R. 9175 does not stand alone in the current legislative effort. The Ways and Means Committee is reviewing a package that includes H.R. 9172, 9173, 9174, 9176, and 9178. Each bill targets a different friction point, from stablecoin de minimis exemptions to wash sale rule alignment. Together, they represent the most coordinated congressional push on crypto tax policy in years. Chairman Jason Smith framed the package as a modernization effort that protects U.S. competitiveness.
Carey’s bill draws the most attention because mining and staking touch nearly every Layer-1 ecosystem. Notably, validators on Ethereum, Solana, Cardano, and Avalanche all face the same phantom income exposure. The coalition’s letter therefore positions H.R. 9175 as the foundational fix. Furthermore, the groups argue that passage would set a precedent for the rest of the package. Industry observers expect committee markup decisions in the coming weeks.
What Happens Next
The Ways and Means Committee has not yet scheduled a markup vote on H.R. 9175. However, the coalition’s letter increases pressure on Chairman Smith to move the bill forward without major amendments. Carey will likely keep building support among Republican members of the committee. Meanwhile, Horsford’s amendment may resurface in a modified form during markup. The outcome will signal how much room exists for bipartisan crypto tax reform this year.
For miners, validators, and institutional stakers, the stakes go beyond accounting mechanics. A clean version of H.R. 9175 would let them defer tax events to align with actual cash flows. In contrast, a watered-down bill could leave the phantom income problem largely intact. The coalition’s message to Congress is direct, pass the bill as written or risk losing the deal. Lawmakers now have a clear test of whether Washington can deliver workable tax rules for digital assets.
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