Congress Advances Crypto Tax Bill With Major Rule Changes

TLDR

• The House Ways and Means Committee released the Digital Asset Tax Certainty Act ahead of a Wednesday markup.
• The bill proposes a $10 de minimis exception for qualifying crypto transactions and network fees.
• Mining and staking income would generally be treated as ordinary income under the proposed crypto tax rules.
• The legislation would extend wash-sale rules to traded digital assets, limiting some loss deductions.
• The Treasury would need to create a Digital Asset Voluntary Disclosure Program within 12 months of enactment.

The House Ways and Means Committee released a cryptocurrency tax bill on Monday ahead of a Wednesday markup on digital asset rules. The Digital Asset Tax Certainty Act, introduced by Chair Jason Smith, R-Mo., combines proposals discussed during a June hearing and returns crypto tax policy to Congress.

Crypto Tax Bill Adds Small-Payment Relief

The bill creates a de minimis exception for crypto transactions and network fees. Taxpayers would not need to report a gain or loss when they use crypto to pay a qualifying fee of $10 or less. The proposal also covers U.S. dollar stablecoins that move slightly from their $1 target. In some cases, redemption value would serve as the tax basis when a taxpayer acquires the asset near that value.

Taxpayers could choose simplified annual accounting for traded digital assets. Eligible users could calculate gains and losses annually instead of tracking each qualifying transaction. The fee exemption and annual accounting rule would begin in 2028. The changes aim to simplify crypto tax reporting and set clearer federal treatment for digital asset activity.

Mining, Staking and Wash-Sale Rules

The proposal says mining and staking income would generally count as ordinary income. It would also allow investment trusts to stake digital assets without that activity alone changing their tax status. The bill does not include a proposal that allows some taxpayers to delay income recognition on newly created digital assets. Industry groups had supported keeping that option.

Wash-sale rules would also expand to traded digital assets. The rule could deny a loss when a taxpayer sells an asset and buys the same or a substantially identical asset within 30 days before or after the sale. The bill says certain digital asset transfers under qualifying lending agreements would not count as sales or exchanges. Lawmakers introduced the lending and anti-abuse provisions before the June hearing.

The measure would also direct the Treasury Department to create a Digital Asset Voluntary Disclosure Program within 12 months of enactment. Eligible taxpayers could amend earlier returns and pay outstanding tax, interest, and penalties. The House Ways and Means Committee plans its markup for Wednesday at 10 a.m. ET. Members can debate and amend the crypto tax bill during the session before a committee vote.

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