House Plan Seeks Tax Safe Harbor for Stablecoins, Crypto Staking

A bipartisan House duo is drawing up a cryptocurrency tax framework that would provide a safe harbor for some stablecoin transactions and delay taxation of rewards earned by verifying blockchain transactions.

The cryptocurrency sector has clamored for legislation that would clarify the tax treatment of digital assets, even as a broader measure to establish regulation of the assets is still under negotiation. Republican Representative Max Miller of Ohio and Democrat Representative Steven Horsford of Nevada have obliged with a rough draft that would align the taxation of cryptocurrencies with that of traditional securities.

The draft, a mix of bill ...