Polygon Labs responded to the Senate regarding the taxation of digital assets, suggesting that taxes should only be applied when selling or disposing of consensus layer staking rewards

ChainCatcher message, previously the U.S. Senate Finance Committee issued a request for comments to the digital asset community and other stakeholders. Polygon Labs responded, suggesting that the IRS should only tax consensus layer staking rewards when they are sold or otherwise disposed of.

Polygon Labs believes that this measure upholds the principle of not taxing its property before disposal, more clearly reflects income situations, and facilitates IRS management, while remaining consistent with the principle of technological neutrality.