Congress quietly hands cryptocurrency miners a major tax deferral
H.R. 9175 — Tax Clarity for Mining and Staking Act · Filed by Mike Carey (R-OH) · Introduced Jun 8, 2026 · Referred to committee
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What it does
This bill creates a new tax regime for cryptocurrency miners and stakers. It allows them to defer reporting income from newly minted digital assets (coins earned through mining or staking) and instead capitalize their acquisition costs. When they later sell those assets, gains are taxed as ordinary income rather than capital gains, and losses receive limited deductions. The bill also clarifies sourcing rules for tax purposes and ensures investment trusts engaged in staking are treated as trusts rather than active businesses.
Why we flagged it
The bill's core function is to create a specialized tax-deferral and cost-capitalization regime exclusively for digital-asset miners and stakers. Despite the neutral title 'Tax Clarity,' the mechanism is a substantive tax benefit, not a clarification of existing law.
What the text implies
- Income deferral until disposition means miners/stakers can indefinitely delay tax liability on newly minted assets, creating a timing advantage unavailable to wage earners or other business operators.
- Capitalization of 'specified acquisition costs' (mining hardware, electricity, fees) reduces taxable income in the year incurred, effectively subsidizing the cost of mining/staking operations through foregone tax revenue.
- Ordinary-income treatment on disposition (rather than capital-gains rates) appears punitive but is offset by the upfront deferral; the net effect is favorable compared to current law for most miners/stakers.
- The bill excludes controlled foreign corporations and passive foreign investment companies, but allows US persons with foreign branches to source income outside the US, potentially enabling tax avoidance strategies for large multinational mining operations.
- Investment trusts engaged in staking receive special status to avoid being treated as active businesses, allowing passive investors to participate in staking income without triggering business-income taxation—a benefit not available to traditional passive investors in other sectors.
Who it affects
Ordinary taxpayers bear the cost of a narrowly tailored tax deferral and favorable cost-capitalization regime benefiting cryptocurrency miners and stakers—a small, wealthy subset of the population. The deferral of income recognition and ability to capitalize costs reduces tax liability for this group while the ordinary-income treatment on disposition (rather than capital-gains treatment) is offset by the upfront deferral benefit. The bill provides no offsetting public benefit, consumer protectio
Who stands to gain
- cryptocurrency miners
- digital asset stakers
- investment trusts holding digital assets
- cryptocurrency exchanges and custodians
- hardware manufacturers (mining equipment)
Named in the bill
Internal Revenue Code of 1986, Section 1400W (newly created), Section 863 (sourcing rules), Section 751 (partnership rules), Section 199A (qualified business income deduction), Section 7701 (definitions), Secretary of the Treasury, Controlled foreign corporations, Passive foreign investment companies
Where it stands
- Jun 8, 2026 — Introduced · Congress.gov: “Introduced in House”
- Jun 8, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”
Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.
Money around this bill
12 lobbying clients named this bill on 13 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $7,365,000 in lobbying spend. A filing names 13 bills on average, so that figure is what each filing reported, not a share belonging to this bill.
More lobbying clients named this bill than 93% of bills with at least one filing.
Mike Carey, the sponsor, reported $1,809,017 in PAC receipts in the 2026 cycle.
- American Bankers Association — $3,510,000 on 1 filing
- Coinbase, Inc. — $1,160,000 on 1 filing
- Solana Policy Institute — $610,000 on 1 filing
- Franklin Resources, Inc. (franklin Templeton) and Affiliates — $540,000 on 2 filings
- American Federation of Teachers — $410,000 on 1 filing
Lobbying Disclosure Act filings through Jul 22, 2026. A filing shows who paid to lobby on a bill it names, not what changed.
How this was measured
Analysis — Quorum's AI read the full bill text on Jun 10, 2026; transparency and hidden-provision scores are compared against the median of 16,222 analysed bills.
Status and sponsors — Congress.gov's bill record — actions, committee referrals and cosponsors — loaded nightly. The timeline shows status changes, not every procedural action.
Money — Senate Lobbying Disclosure Act filings whose specific-issue field names this bill for quarters ending Jun 2026 to Jun 2026. A filing's amount is reported whole beside the median number of bills a filing names; it is never divided across them. PAC receipts are FEC-reported contributions to the sponsor's candidate committee in the 2026 cycle.
As of — lobbying records through Jul 22, 2026 · page rendered 2026-10-20.
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