So, reading the title you might be saying "that 100% makes sense, no taxes!" and I'd like to agree with you, cause that is the best possible outcome, but we've gotta look at it without our crypto loving bias so let's see what's up.
A couple from Nashville, Tennessee, sought a refund and filled a complaint to the IRS connected to their crypto earnings. The couple claim that mining and staking should not be taxed until traded because they establish the creation of property. None of the major US laws, regulations, constitutions and such allows for the creation of property to be treated as income. The crypto in question is called "Tezos" and the lawsuit is one of the very first complaints filled to the IRS that connect to the crypto world, the first of many most likely as the law is still blurry in the area of crypto and quite likely will stay that way for a long time.
To quote the couples lawyer
Like a baker who bakes a cake using ingredients and an oven or writes a book using Microsoft Word and a computer, Mr. Jarrett created Property. Like the baker or the writer, Mr. Jarrett will realize taxable income when he first sells or exchanges the new Property he made, but the federal income tax law does not permit the taxation of the Jarretts simply because Mr. Jarrett made new Property.
They base their case mostly on a few very old cases that are in a sense similar cause of the blurriness of the laws that were still used at the time.
As most of you can deduce this is hard to give a verdict on, as staking and mining are both in a sense income and not at a 0$ cost basis, or they might just be honestly it depends on your viewpoint really.
For anyone not understanding, creation of property is like making art. You used some money to get the tools and other resources but the art itself has no value until you give it a price yourself. So from that viewpoint, crypto already has a market value and therefore isn't property. We hope they don't get this analogy given to them and still win their case of course cause it helps all of us out too in a sense. It could also be that I am wrong to give this type of analogy but I tried as best I could to describe it, you guys can think up the rest.
That's that for me, I hope they win the suit and get their money back + interest! Thanks for reading and Cheers!