A US House of Representatives panel is preparing to vote on a major crypto tax bill that could begin the legislative process for new digital-asset tax rules. The House Ways and Means Committee has released a 114-page bill called the “Digital Asset Tax Certainty Act” ahead of a September 16 hearing. The proposed legislation covers small crypto transactions, gain and loss accounting, transfers, wash-sale rules, mining, staking and broker requirements. The vote on Wednesday may set the stage for more cryptocurrency tax legislation in 2027, even if the plan is unlikely to become law this year.
The measure was made public by the Ways and Means Committee late on Monday in advance of its planned markup meeting. It is anticipated that lawmakers will discuss the measures and decide whether or not to proceed with the legislation.
Source: waysandmeans.house.gov
The proposed legislation comes after many iterations of digital-asset tax bills were submitted over the last year by Representatives Steven Horsford and Max Miller.
One of the most notable provisions would remove taxes on certain small network or transaction fees. The proposal would cover fees below $10.
However, there is an important restriction. A person who has carried out more than 5,000 transfers during the previous year would not qualify for the exemption.
The treatment of small transactions has been an important issue for the crypto industry. Supporters argue that requiring people to calculate and report capital gains or losses on every small crypto transaction makes digital assets less practical for everyday purchases.
Under the current system, even a small crypto purchase can potentially create a taxable capital gain or loss that must be reported.
The proposed bill also addresses several other areas of cryptocurrency taxation. These include the accounting of gains and losses, asset transfers, wash-sale rules, crypto mining and staking, as well as requirements involving brokers.
Several provisions focus on tokenized assets. The bill also seeks to clarify how ownership could be treated when digital assets are disposed of.
The legislation would further direct the US Treasury secretary and the Internal Revenue Service to develop and publish additional rules where necessary.
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