Tax Bill Advances Amid Fed Hike Uncertainty

A bipartisan digital-asset tax bill has advanced through the U.S. House Ways and Means Committee, but it is still far from becoming law. The bill aims to provide clearer treatment for small transactions, mining and staking rewards, and wash-sale rules.

The committee voted 38-5 in favor of the proposal, which will now be sent to the full House for consideration. However, even if the bill becomes law, it may not have a significant impact on the crypto market immediately.

Meanwhile, the Federal Reserve raised its target rate to 3.75%-4% in response to inflation concerns. This move has sent mixed signals to crypto investors, with some seeing an opportunity for regulatory clarity and others worried about higher costs.