Digital Asset Tax Advocacy Hires Lobbyists to Shape Crypto Tax Policy

Digital Asset Tax Advocacy has registered with Resonant Tax Strategies LLP to lobby on taxation and Internal Revenue Code matters. This move indicates the group's intent to shape crypto tax policy.

The digital asset market reached a total capitalization of $3 trillion in 2025, with up to 30% of American adults owning digital assets. However, the current tax code applies rules written decades before blockchain technology existed, leaving many transactions without explicit guidance.

The IRS Form 1099-DA requires brokers to report gross proceeds for transactions from January 1, 2025, onwards and will require basis reporting starting on January 1. The crypto wash sale loophole costs the Treasury $24 billion due to investors being able to sell at a loss and immediately repurchase.

Capitol Hill has shifted its focus from market structure to tax policy with bipartisan momentum building in 2026. Sen. Cynthia Lummis (R-WY) and Sen. Bill Cassidy (R-LA) have joined legislation addressing a de minimis rule for crypto purchases, ending double taxation of miners and stakers, providing parity with other financial assets on wash sales and mark-to-market treatment.