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Weekly Crypto Regulation Roundup: Staking Taxes Under Fire as Fed Hints at New Crypto Banking Model

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As the ultimate regulatory roundup of 2025 this week’s developments captured a inflection level for US crypto coverage displaying a shift away from ad-hoc enforcement and towards extra structural debates round taxation, banking entry and investor safety.

From renewed strain on the IRS over staking taxes to the Federal Reserve exploring new account fashions for cost companies, regulators are confronting how digital property will be built-in into monetary frameworks designed for a really completely different period.

Lawmakers Renew Push on Staking Tax Treatment

A bipartisan group of 18 US House lawmakers has urged the Internal Revenue Service to revisit how crypto staking rewards are taxed, arguing that present interpretations quantity to double taxation and discourage participation in blockchain networks.

In a letter despatched to performing IRS commissioner Scott Bessent, the group—led by Representative Mike Carey—referred to as current steerage “burdensome” and requested for a overview earlier than 2026.

Under prevailing interpretations, staking rewards are handled as taxable revenue when obtained, primarily based on their market worth at that point, and are then taxed once more if offered at a acquire.

Lawmakers argue this method fails to replicate precise financial revenue, significantly in unstable markets the place token costs can fluctuate sharply between receipt and sale. “This letter is just requesting honest tax remedy for digital property,” Carey stated, including that taxing rewards solely when offered could be a significant step towards readability.

The renewed strain highlights a broader debate over whether or not staking needs to be handled like earned revenue or extra akin to unrealised asset appreciation—a problem that is still unresolved as staking turns into extra central to proof-of-stake networks.

Fed Explores New Access to Payment Rails

Separately, the Federal Reserve opened a consultation that might reshape how crypto and payment-focused companies work together with the US banking system.

The Fed is searching for public touch upon a proposed “cost account,” a limited-use central checking account designed to sit down alongside—however stay distinct from—the standard grasp account utilized by banks.

The proposal exhibits rising pressure on the Fed’s current framework as fintechs and crypto companies search direct entry to cost rails with out partaking in lending or deposit-taking.

By making a tailor-made account mannequin, the Fed seems to be weighing the best way to accommodate new enterprise fashions whereas preserving safeguards tied to full-service banking.

The 45-day remark interval, following publication within the Federal Register, suggests regulators are nonetheless in an exploratory section. But even contemplating such accounts indicators a recognition that denying entry altogether could not be sustainable as digital funds and tokenised settlement programs increase.

SEC Targets Fraud Masquerading as Innovation

While tax and banking debates targeted on structural reform, enforcement remained firmly in play. The U.S. Securities and Exchange Commission charged a network of alleged fake crypto trading platforms and so-called AI funding golf equipment, accusing them of orchestrating a $14 million retail fraud.

According to the SEC, entities together with Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and a number of other AI-branded funding golf equipment used social media promoting, messaging apps, and fabricated merchandise to lure buyers into what regulators described as an “funding confidence rip-off.”

The case exhibits persistent regulatory concern: whereas professional crypto companies push for clearer guidelines, unhealthy actors proceed to use hype round AI and digital property to focus on retail buyers. For regulators, enforcement actions like this stay a key justification for sustaining a tough line on shopper safety.

Arizona Tests the Limits of State-Level Crypto Tax Policy

At the state degree, Arizona lawmakers introduced a fresh attempt to carve out a extra permissive tax setting for digital property. Proposals backed by State Senator Wendy Rogers would exempt digital forex from sure taxes and bar native governments from imposing charges on blockchain node operators.

One invoice would take away digital forex from state taxation, whereas one other would stop cities and counties from taxing node operations. A separate constitutional modification would explicitly exclude crypto from property tax—however would require voter approval in November 2026.

The effort highlights the strain between state-level experimentation and broader fiscal realities. Arizona at present levies a flat 2.5% revenue tax and a transaction privilege tax that averages above 8.5% as soon as native charges are included, making a completely “tax-free” standing politically and fiscally complicated.

A Regulatory Picture Still in Motion

This week’s developments illustrate a regulatory panorama in transition. Policymakers are more and more targeted on aligning crypto with current monetary rules—honest taxation, managed entry to cost programs, and investor safety—whereas nonetheless wrestling with how far current guidelines can stretch.

As staking, tokenised funds, and crypto-native infrastructure mature, the strain on regulators to maneuver from interim fixes to sturdy frameworks is barely set to develop.

The put up Weekly Crypto Regulation Roundup: Staking Taxes Under Fire as Fed Hints at New Crypto Banking Model appeared first on Cryptonews.

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