Weekly Crypto Regulation Roundup: Staking Taxes Under Fire as Fed Hints at New Crypto Banking Model
Eighteen US House lawmakers led by Rep. Mike Carey are urging the IRS to revisit the current tax treatment of cryptocurrency staking rewards. They argue that existing guidance results in staking rewards being taxed both upon receipt and again upon sale. The lawmakers are calling for a review before 2026 that would tax these rewards only when sold, to better reflect actual economic profit.
Meanwhile, the Federal Reserve has opened a public consultation on a proposed limited-use central bank "payment account." This account would sit alongside traditional master accounts and grant crypto firms limited access to payment rails. The consultation period will last 45 days following the publication in the Federal Register. This initiative signals regulators' effort to accommodate new crypto and fintech business models while maintaining necessary safeguards, indicating a shift towards structured banking access for digital assets.
In enforcement actions, the SEC charged a network of fake crypto trading platforms and AI-branded investment clubs in a $14 million retail investor scam. Named entities include Morocoin Tech Corp. and Berge Blockchain Technology Co. Ltd. This action underscores the ongoing focus on investor protection.
At the state level, Arizona lawmakers have proposed bills seeking to exempt cryptocurrency from state taxes, prevent local governments from taxing crypto or blockchain node operators, and pursue a constitutional amendment to exclude crypto from property tax. The amendment would require voter approval in November 2026. Currently, Arizona imposes a flat 2.5% income tax and a transaction privilege tax averaging above 8.5% including local rates.
Overall, this week’s developments highlight a regulatory landscape evolving from ad-hoc enforcement towards structured debates on taxation, banking access, and investor protection as staking and tokenized payments mature.
