US House to Vote on Bitcoin Reserve and Crypto Tax Rules
Two major bills targeting crypto taxation and government Bitcoin holdings advance to a House committee vote on Wednesday, aiming to codify a 20-year holding requirement for state reserves and simplify small transaction reporting.
The US House committee will vote on a Strategic Bitcoin Reserve bill on Wednesday. The legislation mandates that the government holds its Bitcoin for a minimum of 20 years. This rule would supersede any executive order that reverses the current no-sale policy.
A companion bill addresses capital gains tax friction for retail users. It proposes a de minimis exemption for crypto transactions valued at $10 or less. This change removes the requirement to report every small purchase as a taxable capital gain or loss.
Codifying the 20-Year Holding Rule
The Strategic Bitcoin Reserve bill converts an executive order into statutory law. It requires federal agencies to report their total Bitcoin holdings to Congress. The law also mandates an independent annual proof of reserves audit to verify assets.
State governments can store Bitcoin in separate federal accounts while retaining ownership. The bill prohibits the use of new taxes or printed money to acquire additional coins. It specifically rejects proposals to revalue gold reserves to fund Bitcoin purchases.
Closing the Wash Sale Loophole
The tax bill aligns crypto trading rules with existing stock market regulations. It eliminates the ability to sell an asset at a loss and immediately buy it back. This closes a tax avoidance strategy currently unavailable to equity traders.
Simplifying Small Transaction Reporting
Current IRS rules treat every crypto spend as a property sale. A $2 coffee purchase triggers a capital gain or loss calculation. The proposed exemption removes this reporting burden for transactions under $10, reducing compliance friction for daily users.
GN markets/crypto (en-US) notes that these changes address long-standing complaints from retail investors. The measures aim to make crypto usable for payments while tightening institutional tax reporting standards.
