House crypto tax bill proposes $10 fee exemption and extends wash‑sale rules

The House Ways and Means Committee unveiled a comprehensive crypto tax proposal, the Digital Asset Tax Certainty Act, ahead of its scheduled markup on September 16. The 114‑page package combines elements from earlier Republican and bipartisan bills and targets several areas of digital‑asset taxation.

Small‑fee exemption

The bill would remove federal tax on qualifying blockchain network and transaction fees that are under $10, provided the user did not exceed 5,000 transfers in the prior year. The exemption is intended to ease reporting burdens for routine, low‑value crypto payments.

Extension of wash‑sale rules

Current tax law treats digital assets as property, allowing investors to sell at a loss, repurchase immediately, and still claim the loss. The proposal would apply existing wash‑sale and constructive‑sale anti‑abuse rules to digital assets, with an exception for qualified U.S. dollar‑denominated stablecoins.

Mining and staking treatment

The legislation retains debate over the timing of income recognition for mining and staking rewards. One draft (H.R. 9175) would let miners and stakers defer income until the tokens are sold, a measure estimated to reduce federal revenue by nearly $3 billion over fiscal years 2026‑2036. Lawmakers are considering retaining, removing, or limiting this deferral.

Other provisions

• Broker reporting requirements for crypto transactions.
• Guidance on gain and loss calculations, including crypto‑to‑crypto swaps.
• Exemption for qualified U.S. dollar stablecoins from wash‑sale rules.

The package will be considered alongside unrelated tax and health‑care measures. Industry groups, including the Blockchain Association and Crypto Council for Innovation, have advocated for preserving the mining and staking deferral, while banking groups argue it creates an uneven tax treatment compared with traditional investment income.