House Crypto Tax Bill Proposes Exemption on Small Blockchain Fees

A new House crypto tax bill proposes making blockchain network fees under $10 tax-exempt. The Digital Asset Tax Certainty Act, unveiled by Committee Chair Jason Smith on September 15, offers relief for small network fees and expands wash-sale rules.

According to the draft legislation, taxpayers who made over 5,000 transactions in the past year would be exempt from paying taxes on transactions with network fees under $10. This provision aims to address the issue of small blockchain transactions that give rise to tax-reporting obligations under existing tax laws.

The bill also includes provisions related to staking, mining, wash sales, and brokers. It seeks to standardize tax reporting for digital assets and bring them in line with traditional securities. The inclusion of a wash-sale rule is expected to generate revenue amounting to $2.074 billion from 2026 to 2036.

The bill will be considered by the Ways and Means Committee on September 16, alongside other non-related tax and healthcare laws. Industry associations have called on lawmakers to defer taxation upon a sale of staking rewards, citing concerns about delayed taxation providing a different crypto reward tax treatment from interest, dividends, and other income types.