TechFlow, Nov. 19 — According to Bloomberg, Indiana Republican Senator Todd Young sent a letter on November 19 to Treasury Secretary Scott Bessent, urging the Internal Revenue Service (IRS) to reevaluate its 2023 guidance on the tax treatment of cryptocurrency staking rewards. As a member of the Senate Finance Committee, Senator Young questioned the rationale behind current rules requiring crypto holders to pay taxes when they "receive" staking rewards, rather than when they "sell" them.
Staking refers to the process by which cryptocurrency holders lock up their assets to support blockchain network operations and validate transactions. Bessent currently serves as acting commissioner of the IRS, giving him direct authority to review this policy.
