The U.S. House of Representatives is brewing a tax safe harbor for stablecoin and encryption asset staking, and clarifying the tax system standards.

PANews, December 22, reported that bipartisan lawmakers in the U.S. House of Representatives are working together to draft a cryptocurrency tax framework that will provide a safe harbor for certain stablecoin transactions and defer taxation on rewards obtained through verifying Blockchain transactions. As negotiations continue on broader digital asset regulatory legislation, the cryptocurrency industry is urgently calling for legislation to clarify the tax treatment of digital assets. Ohio Republican Congressman Max Miller and Nevada Democratic Congressman Steven Horsford have responded to this call by drafting a proposal to align the taxation of cryptocurrencies with traditional securities. The draft, which includes the bill text and policy objectives, proposes to exempt transactions of regulated stablecoins that maintain value between $0.99 and $1.01 from Capital Gains Tax. The proposal also attempts to establish safe harbor rules for the distribution and handling of rewards from staking and Mining, which are related to Blockchain transaction verification. Additionally, the draft includes cryptocurrencies in the tax system that covers securities transactions as well as certain commodity transactions. The Capital Gains Tax exemption enjoyed by foreign investors conducting securities transactions through domestic third parties and securities lending investors will also apply to digital assets.