US House of Representatives proposes Digital Asset Tax Clarity Act to clarify that staking rewards are only taxed when sold

U.S. Rep. Wiley Nickel and Republican Drew Ferguson introduced a bill called the Digital Asset Tax Clarity Act on Tuesday, which clarifies that staking rewards are only taxed when sold to prevent double taxation. Rep. Ferguson said in a statement: "The United States' treatment of digital asset rewards is too complicated, leading to investor confusion, double taxation, and the relocation of U.S. businesses overseas. The Digital Asset Tax Clarity Act will provide the industry with much-needed tax clarity, establish the United States' leadership in digital asset tax treatment, and encourage innovation and business in the United States." It is reported that the U.S. Internal Revenue Service stated in a ruling last year that cryptocurrency investors who receive returns from staking services need to include the value of these returns in their total income. (The Block)