Republican lawmakers have called on the Treasury to fast‑track a revision of the IRS’s guidance on crypto staking, hoping to bring clarity before the 2025 tax year ends.

What Happened

On December 19, 2025, House members sent a letter to Treasury Secretary Scott Bessent demanding an overhaul of the IRS rule that classifies staking rewards as ordinary income. The request comes amid growing concerns that the current guidance is ambiguous and could lead to unexpected tax liabilities for U.S. crypto investors.

Why It Matters for Bitcoin

Staking rewards are a popular way for Bitcoin and other cryptocurrencies to generate passive income. If the IRS treats these rewards as ordinary income, holders could face higher marginal tax rates and more complex reporting requirements. Clarifying the rules would help investors plan their tax strategies and could influence the adoption of staking services.

U.S. Angle

The U.S. Treasury’s response will interact with SEC enforcement trends, upcoming Bitcoin ETF approvals, and the Federal Reserve’s monetary policy. A clearer tax framework could reduce compliance costs for institutional players and may affect the pricing of crypto‑related ETFs that include staking components.

What to Watch Next

  • Treasury’s official reply and any proposed amendment to the IRS guidance.
  • Potential SEC clarifications on staking as a security.
  • Impact on Bitcoin ETF structures and fund flows.
  • Fed’s policy moves that could influence crypto volatility.

Start Here

Curious how staking could fit into your portfolio? Check out our free staking guide.

Source

Source: Decrypt

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