US crypto tax bill may help staking more than Bitcoin mining

A US tax proposal could make domestic staking businesses easier to run, but it is unlikely to change where large Bitcoin mining projects get built. For crypto investors, that split matters: one part of the market faces a tax timing problem, while the other is still constrained by power, land, and grid access.

H.R. 9175, the Tax Clarity for Mining and Staking Act, would let miners and stakers defer tax on newly minted tokens until they are sold. Today, under IRS Revenue Ruling 2023-14, staking rewards are taxed as ordinary income when received, even if the tokens are locked and cannot be sold. That creates a cash burden for validators and their clients, especially if prices fall before liquidation. A June 4 Tax Court opinion in Paschall v. Commissioner backed that treatment, though the ruling is non-precedential.

The bill has support from the Blockchain Association, Crypto Council for Innovation, and The Digital Chamber. If passed, it could make US-based validation more workable for institutions that might otherwise look to places like Switzerland and Singapore.

Bitcoin mining is different. The US still held about 37.5% of global hashrate in January 2026, but new capacity is following cheap, reliable power. Paraguay, Ethiopia, and Oman are gaining share, while US miners face slower permitting, grid scrutiny, and tighter interconnection rules.