Remy Blaire engages in a timely discussion with Kristin Smith, the President of the Solana Policy Institute, as the Thanksgiving holiday approaches and the 2026 tax season looms on the horizon. The conversation begins with an exploration of how tax laws and investor behaviors, particularly the practice of tax-loss harvesting, can impact the economy during this critical time of year.
Kristin shares insights into a recent initiative where the Solana Policy Institute, alongside over 65 leading crypto organizations, sent a joint letter to the Trump administration. This letter outlines actions that federal agencies can take to provide clarity on cryptocurrency taxation and developer protections before the end of the year. Kristin emphasizes the importance of this roadmap, which details necessary steps for Congress, banking regulators, securities markets, and the IRS to take in order to foster a more favorable environment for the crypto industry in the U.S.
The discussion shifts to the confusion surrounding tax structures, particularly in relation to mining and staking activities within the crypto space. Kristin highlights the potential risks of unclear tax guidelines, noting that without proper structures, the U.S. could lose its competitive edge compared to other countries. She expresses hope that the administration can act on these issues, especially since the IRS has the authority to provide guidance without needing Congressional approval.
Remy and Kristin delve deeper into the specific clarity that developers and builders need to remain competitive in the American blockchain landscape. Kristin explains that, for example, rewards generated from staking on the Solana blockchain are currently treated as income, which can create tax burdens that force individuals to sell their tokens prematurely. She advocates for these rewards to be classified as newly created property, allowing for taxation upon sale rather than at the moment of creation. This change would align crypto taxation more closely with the treatment of agricultural products, providing much-needed relief for stakeholders in the industry.