House Committee Unveils Sweeping Crypto Tax Bill Ahead of Markup

The US House Ways and Means Committee has released a comprehensive cryptocurrency tax bill ahead of its markup on Wednesday. The Digital Asset Tax Certainty Act, introduced by committee Chair Jason Smith, aims to establish clearer federal tax rules for digital assets.

Among the key provisions is a de minimis exception for certain fees paid in crypto. If someone pays a qualifying network or transaction fee in crypto worth $10 or less, they won't have to record a gain or loss. The bill also addresses small deviations from the $1 peg for qualifying U.S. dollar stablecoins, generally treating their redemption value as the tax basis if acquired close enough to that value.

The legislation would also require taxpayers to opt for simplified annual accounting for widely traded digital assets starting in 2028. Additionally, mining and staking income would be taxed as ordinary income, but certain investment trusts would be exempt from this rule. The bill would also extend wash-sale rules to traded digital assets.