Crypto industry groups, including the Blockchain Association, Crypto Council for Innovation, and Digital Chamber, are urging Congress to pass the Tax Clarity for Mining and Staking Act, which would exempt crypto mining and staking rewards from taxable income. In a letter to the House Ways and Means Committee, they warned that reopening the compromise could stall the bipartisan progress. However, House Democrats express skepticism, arguing the bill could unfairly favor crypto over traditional investments like stocks and bonds. With midterm elections approaching and Democrats likely to retake the House, the bill's prospects remain uncertain. The industry continues to push for passage, with a flyout planned on Capitol Hill. Separately, the Senate's Clarity Act, which would legalize most crypto activity, faces time constraints, needing passage by August to have a realistic chance.

Key facts

• Industry groups push for tax bill exempting mining and staking rewards from income.
• House Democrats warn bill could unfairly favor crypto over traditional investments.
• Midterm elections and potential Democratic House takeover threaten bill's passage.
• Groups caution reopening compromise could stall bipartisan progress.
• Senate Clarity Act faces tight deadline; must pass by August.