The US mandates tax payers to file defi staking as income tax, therefore it can't offset capital losses. We are at risk with paying high taxes at the end of the year, if we compound/harvest tokens at the wrong time.
Source: https://twitter.com/TokenTax/status/1306404714410651648?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1306404714410651648%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F42346%2Fhow-file-your-defi-taxes-us