House Committee Unveils Crypto Tax Bill With Major Rule Changes

The House Ways and Means Committee has released a cryptocurrency tax bill called the Digital Asset Tax Certainty Act. The bill proposes several major rule changes, including a $10 de minimis exception for qualifying crypto transactions and network fees.

Under this proposal, taxpayers would not need to report a gain or loss when they use crypto to pay a qualifying fee of $10 or less. This exemption also covers U.S. dollar stablecoins that move slightly from their $1 target, with redemption value serving as the tax basis in some cases.

The bill also allows for simplified annual accounting for traded digital assets, allowing eligible users to calculate gains and losses annually instead of tracking each qualifying transaction. Mining and staking income would generally be treated as ordinary income under the proposed crypto tax rules.

The legislation extends wash-sale rules to traded digital assets, limiting some loss deductions. It also directs the Treasury Department to create a Digital Asset Voluntary Disclosure Program within 12 months of enactment, allowing eligible taxpayers to amend earlier returns and pay outstanding tax, interest, and penalties.