Weekly Crypto Regulation Roundup: Staking Taxes Under Fire as Fed Hints at New Crypto Banking Model
As the final regulatory roundup of 2025 this week’s developments captured a inflection point for US crypto policy showing a shift away from ad-hoc enforcement and toward more structural debates around taxation, banking access and investor protection.
From renewed pressure on the IRS over staking taxes to the Federal Reserve exploring new account models for payment firms, regulators are confronting how digital assets can be integrated into financial frameworks designed for a very different era.
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 current interpretations amount to double taxation and discourage participation in blockchain networks.
In a letter sent to acting IRS commissioner Scott Bessent, the group—led by Representative Mike Carey—called existing guidance “burdensome” and asked for a review before 2026.
Under prevailing interpretations, staking rewards are treated as taxable income when received, based on their market value at that time, and are then taxed again if sold at a gain.
Lawmakers argue this approach fails to reflect actual economic profit, particularly in volatile markets where token prices can fluctuate sharply between receipt and sale. “This letter is simply requesting fair tax treatment for digital assets,” Carey said, adding that taxing rewards only when sold would be a meaningful step toward clarity.
The renewed pressure highlights a broader debate over whether staking should be treated like earned income or more akin to unrealised asset appreciation—an issue that remains unresolved as staking becomes more central to proof-of-stake networks.
Fed Explores New Access to Payment Rails
Separately, the Federal Reserve opened a consultation that could reshape how crypto and payment-focused firms interact with the US banking system.
The Fed is seeking public comment on a proposed “payment account,” a limited-use central bank account designed to sit alongside—but remain distinct from—the traditional master account used by banks.
The proposal shows growing strain on the Fed’s existing framework as fintechs and crypto firms seek direct access to payment rails without engaging in lending or deposit-taking.
By creating a tailored account model, the Fed appears to be weighing how to accommodate new business models while preserving safeguards tied to full-service banking.
The 45-day comment period, following publication in the Federal Register, suggests regulators are still in an exploratory phase. But even considering such accounts signals a recognition that denying access altogether may no longer be sustainable as digital payments and tokenised settlement systems expand.
SEC Targets Fraud Masquerading as Innovation
While tax and banking debates focused 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 investment clubs, accusing them of orchestrating a $14 million retail fraud.