US IRS Plans to Tax Staking Income

The IRS has recently released a draft supplement to their rules which requires that any rewards gained from staking coins in Proof-of-Stake networks be counted as taxable income.

In addition, Kraken, one of the leading crypto exchanges, paid a $30 million fine to the SEC in February 2023 as a result of the illegal staking program on their platform and was also ordered by a US court to provide the IRS with customer information who have made transactions of more than $20,000 in a single year.

Furthermore, the SEC has filed a suit against Coinbase which particularly targeted their Coinbase Earn staking program.

Following all these events, the Organization for Economic Cooperation and Development recently created a system for reporting on crypto assets and proposed changes to the single standard for the exchange of tax information.

Moreover, US President Joe Biden suggested collecting taxes from crypto investors worth $24 billion.