House Crypto Tax Package Excludes Reward Deferral Provision

The US House Ways and Means Committee has released a 114-page crypto tax package that excludes a provision allowing miners and stakers to defer taxation of rewards until the tokens are sold. The Digital Asset Tax Certainty Act, H.R. 10357, was published alongside the committee's markup notice on Monday.

The package does not include the reward-timing provision contained in Representative Mike Carey's Tax Clarity for Mining and Staking Act, introduced in June. This provision would have allowed taxpayers to choose between recognizing newly created tokens as income when received or treating them similarly to self-created property and paying tax when sold.

The committee retains some mining and staking provisions in the bill. It would classify income from blockchain validator activities as ordinary income, establish whether it is sourced inside or outside of the United States, and allow qualifying investment trusts to stake digital assets without losing their trust status.