Here's a link to some tax info
https://www.cryptotrader.tax/blog/the-traders-guide-to-cryptocurrency-taxes
the way i look at this is similar to a dividend reinvestment program (DRIP). example you hold stock in a DRIP. dividends are paid by the company and reinvested in more stock. the amount of the dividend reinvested is taxable income. this is true despite the fact that you do not sell the stock. in fact the value of the overall holdings could fall and you would still report the full amount of the dividend as income. you get t take the s in value when you sell the stock. however, there are was sales rules. .
so my take is that such interest when credited to your account is taxable. any decline in the value of the crypto could only be taken when sold. You would also be subject to the wash sales rules
