House Advances Crypto Tax Bill Despite Senate Reg Reform Stumbles

The House Ways and Means Committee has advanced a bill to establish clear federal tax rules for cryptocurrencies. The Digital Asset Tax Certainty Act would set out thresholds for taxes, so people wouldn't have to pay on network or transaction fees in crypto if the fee is $10 or less. This doesn't apply to service providers doing transactions on behalf of others, but that part won't go into effect until December 2027.

The legislation also requires the Treasury Department to establish a Digital Asset Voluntary Disclosure Program within 12 months of enactment. Taxpayers who qualify could amend earlier returns and settle the tax, interest, and any penalties owed.

Rep. Jason Smith said this is 'a historic moment' for the committee, as Republicans and Democrats have come together on the bill. However, Rep. Steven Horsford expressed concerns that mining and staking rewards are still not clearly defined in terms of income recognition.

The House will now leave Washington until after the November elections, so the next steps will likely be taken up during the 'lame duck period'. The Senate Finance Committee has also expressed interest in advancing digital asset tax legislation.