US House Committee Advances Crypto Tax Bill with 38-5 Vote

The House Ways and Means Committee voted 38-5 to advance H.R. 10357, a draft bill that would amend the Internal Revenue Code. This decision moves the legislation closer to full House consideration for digital asset taxation.

The bill seeks to align crypto tax treatment with traditional financial instruments, a step reported by bitcoinfoundation.org. It targets specific areas like staking, mining, and small transaction reporting to reduce administrative burdens.

Committee Vote Advances Digital Asset Rules

Members adopted the substitute amendment by voice vote before the final 38-5 tally. Two amendments offered by Rep. Lloyd Doggett were defeated during the session on September 16.

This is a committee report, not final passage. The bill must now survive the House floor and Senate review to become law.

Mark-To-Market Accounting Gains for Traders

Qualifying dealers and traders would gain access to mark-to-market accounting methods. This change aims to create greater parity between digital assets and traditional financial instruments.

The draft also extends existing safe harbors to digital assets. This reduces the need for complex recordkeeping on small, everyday transactions for many users.

New Restrictions on Tax Strategies

Wash-sale and constructive-sale rules would apply to covered digital assets. These provisions limit specific tax-loss harvesting and tax-deferral strategies currently used by investors.

A voluntary disclosure program would allow taxpayers to correct prior noncompliance. The Treasury Department would manage this initiative to improve overall tax code adherence.