Crypto’s first big tax win comes with a catch for stakers and everyday payments

The House Ways and Means Committee approved the Digital Asset Tax Certainty Act (H.R. 10357) by a 38‑5 vote, moving a package that addresses crypto payments, stablecoins, trading, lending, staking and mining toward full House consideration.

Key provisions

• Eliminates gain or loss recognition when digital assets are used to pay qualifying network and transaction fees of $10 or less, effective for dispositions after Dec. 31, 2027.
• Provides special tax treatment for qualifying U.S. dollar stablecoins and a simplified accounting election for widely traded digital assets.
• Extends existing financial‑market treatment to lending, mark‑to‑market accounting for eligible dealers and traders, and streamlined charitable‑donation rules.
• Applies wash‑sale and constructive‑sale rules to digital assets, closing prior loopholes.

Unresolved issues for staking and mining

The bill classifies income from validation activities (staking and mining) as ordinary income and sets sourcing rules based on the taxpayer’s location. It allows qualifying investment trusts to stake without losing trust status. However, it does not include the optional deferral that would let miners and stakers postpone income recognition until the tokens are sold, a point industry groups say needs further attention.

Industry response

Crypto advocacy groups welcomed the vote as a historic step but urged broader de minimis relief for everyday transactions and a revision of the timing rules for staking and mining rewards. They also called for expanded payment‑related exemptions beyond the $10 fee threshold.

DAO and foreign‑entity guidance

The legislation directs the Treasury to issue guidance within 12 months on the tax treatment of foreign entities linked to decentralized autonomous organizations (DAOs), including pathways for qualifying foundations to reorganize as domestic corporations and potential temporary safe harbors for entities formed before Sept. 14.