House Committee Advances Bipartisan Crypto Tax Bill in 38-5 Vote

The House Ways and Means Committee has advanced a bipartisan crypto tax bill in a 38-5 vote, sending it to the full House for consideration.

The proposed legislation would introduce new tax rules for digital assets, including mining, staking, and transactions. It would also extend wash-sale restrictions that currently apply to stocks to digital assets.

Industry figures have expressed concerns about the bill's treatment of newly created crypto rewards and its impact on traders. Jason Somensatto, director of policy at Coin Center, argued that the bill should remain neutral on the issue of block-reward language, which he believes could be seen as congressional endorsement of the IRS's mistaken position.

The proposed legislation would exempt small transaction fees tied to digital asset sales from taxation and make it simpler to use crypto and stablecoins for everyday purchases. It would also classify mining and staking income as ordinary income rather than capital gains, although it leaves open when that income should be recognised for tax purposes.