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U.S. Senators Urge IRS to Revisit Crypto Assets Stake Rewards Tax Policy
[U.S. Senators Urge IRS to Reconsider Tax Policy on Crypto Assets Staking Rewards] Indiana Republican Senator Todd Young wrote to Treasury Secretary Scott Bansen, urging the Internal Revenue Service (IRS) to reassess and reconsider the guidance on the tax treatment of staking rewards for Crypto Assets issued in 2023. As a member of the Senate Finance Committee, Senator Yang questioned the rationale of the current regulations that require Crypto Assets holders to pay taxes when they “receive” staking rewards, rather than when they “sell”. Staking refers to the process by which Crypto Assets holders lock up their assets to support the operation of the blockchain network and validate transactions. Besant currently also serves as the IRS deputy commissioner, having direct oversight over this policy.