US House approves crypto tax framework, but industry groups push for more
Committee advances digital asset tax bill
A House committee advanced a bill that creates new federal rules for taxing crypto assets. On Sept. 16, the House Ways and Means Committee approved the Digital Asset Tax Certainty Act (H.R. 10357) by a vote of 38-5. The bill moves to the full House for a final vote.
The legislation covers several areas of the crypto industry, including payments, trading, and lending. While industry groups welcome the vote, they argue the bill does not address all their key concerns.
What the bill changes
- It removes tax consequences when using crypto to pay network fees under $10. This applies to transactions made after Dec. 31, 2027.
- It extends wash-sale rules to digital assets. These rules currently apply to stocks and limit how quickly investors can re-buy a lost asset to claim a tax loss.
- It creates special tax rules for US dollar stablecoins, which are digital tokens designed to hold a fixed value.
- It classifies income from validation activities, such as mining and staking, as ordinary income.
Industry groups want more
Officials from the Crypto Council for Innovation and a16z crypto said the bill is a step forward but leaves important issues unresolved. Alison Mangiero of the Crypto Council for Innovation said lawmakers need to change when staking rewards become taxable. Staking is the process of locking up crypto to secure a network in exchange for rewards.
Mangiero noted that the current rules force miners and stakers to pay taxes on rewards immediately, even if they have not yet sold the tokens. This can create a tax liability before the assets are liquidated. She also argued the bill needs broader tax relief for everyday payments, such as buying small items with crypto.
Miles Jennings, a legal expert at a16z crypto, noted the bill directs the Treasury Department to provide guidance on tax rules for foreign organizations. This could help international crypto groups operate under US regulations.
Next steps
The bill has been ordered to be reported to the full House. The committee expects lawmakers to consider changes to the bill as it moves through the legislative process.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.