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U.S. Senators Urge IRS to Revisit Crypto Assets Stake Rewards Tax Policy


According to Jincai Finance, Indiana Republican Senator Todd Young sent a letter to Treasury Secretary Scott Betsey urging the IRS( to reconsider and review its guidance on the tax treatment of Crypto Assets stake rewards for 2023. As a member of the Senate Finance Committee, Senator Young questioned the reasonableness of the current regulation that requires Crypto Assets holders to pay taxes upon "receiving" stake rewards rather than when they "sell" them. Staking refers to the process by which Crypto Assets holders lock their assets to support the operation of blockchain networks and validate transactions. Betsey currently also serves as the acting commissioner of the IRS and has direct oversight of this policy.
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