House Committee Advances Comprehensive Crypto Tax Reform with Bipartisan Support

The House Ways and Means Committee has advanced the Digital Asset Tax Certainty Act with an overwhelming bipartisan vote of 38-5, clearing a major hurdle for what could be the most comprehensive overhaul of crypto tax rules in US history. The bill, introduced by Rep. Jason Smith (R-MO) on September 14, aims to address one of crypto's persistent headaches: the tax treatment of small transaction fees.

Under current rules, every time a user pays a network fee to send tokens or interact with a blockchain, that technically constitutes a taxable event. The proposed bill introduces a de minimis exemption that lets users skip recognizing any gain or loss on digital asset dispositions used to pay network or transaction fees of $10 or less.

The legislation goes beyond gas fees and addresses stablecoin basis calculations, simplifying annual accounting for widely traded digital assets, which will take effect in 2028. It also creates new rules for digital asset lending, mining, and staking, as well as expanding wash-sale rules to cover most traded digital assets.

The Joint Committee on Taxation projects that the bill will generate a net revenue increase of roughly $500 million over fiscal years 2027 to 2036. This is a modest projection relative to the size of the US digital assets market, which currently exceeds $2 trillion in value.