US House Crypto Tax Bill Exempts Fees Under $10, Targets Heavy Traders

The US House Ways and Means Committee has unveiled a new crypto tax bill called the Digital Asset Tax Certainty Act, H.R. 10357. The bill aims to simplify taxes for digital assets by exempting network fees under $10 from taxation.

The exemption would apply to most users who engage in everyday transactions, but there's a catch: anyone with more than 5,000 transfers in the prior year would not qualify for this exclusion.

The bill also addresses wash sales, which allow crypto traders to sell at a loss and buy back the same asset immediately while still claiming the deduction. This practice is currently not subject to wash-sale rules like it is for stock investors.

However, the markup of the bill could get messy due to disagreements over mining and staking provisions, which would let miners and stakers defer income on newly created tokens until they sell them. The estimated cost of this provision is $2.956 billion over a decade.