House Panel Advances First Federal Crypto Tax Framework

The House Ways and Means Committee approved the Digital Asset Tax Certainty Act by a vote of 38-5. This action advances the first comprehensive federal tax framework for digital assets. The bill covers payments, stablecoins, trading, lending, staking, and mining. It moves to the full House for final consideration.

Payment Fee Relief Remains Limited

The legislation eliminates gain or loss recognition for specific transaction fees. This applies to fees of no more than $10. The provision begins for dispositions after December 31, 2027. The asset used to pay the fee must generally match the underlying asset type.

Industry groups argue this scope is too narrow. They seek broader de minimis relief for everyday purchases. The current text covers qualifying fees rather than small general transactions. This distinction leaves a gap for regular consumer spending.

Staking Income Timing Unresolved

The bill treats income from validation activities as ordinary income. It establishes sourcing rules based on the taxpayer location. It allows investment trusts to stake assets without losing status. However, it does not change when these rewards become taxable.

Crypto Council for Innovation officials noted this issue. They want lawmakers to refine income recognition timing. This remains a key friction point for network participants. The current rules create ongoing tax liabilities for validators.

New Anti-Abuse Rules Apply

The package extends wash-sale provisions to digital assets. It also applies constructive-sale rules. These changes close tax strategies previously available to crypto holders. The committee aims to align digital assets with traditional financial instruments.

Additional provisions include lending safe harbors. It offers mark-to-market accounting for eligible dealers. It streamlines rules for charitable donations. These measures provide simplified accounting options for widely traded assets.