House Ways and Means Committee Advances First Federal Crypto Tax Framework

The House Ways and Means Committee voted 38‑5 to advance the Digital Asset Tax Certainty Act, sending the bill to the full House for consideration as Senate action on broader digital‑asset regulation stalls.

Key Provisions of the Bill

• Sets a de‑minimis threshold so transaction fees of $10 or less are not taxable, except for service providers acting on behalf of others.
• Requires the Treasury Department to launch a Digital Asset Voluntary Disclosure Program within 12 months of enactment, allowing eligible taxpayers to amend prior returns and settle taxes, interest, and penalties.
• Classifies income from mining and staking as ordinary income, while permitting certain investment trusts to stake holdings without that activity alone affecting their tax status.
• Delays implementation of the new rules until December 2027.

Unresolved Issues

The bill does not specify when mining and staking rewards are recognized as income, a point highlighted by Rep. Steven Horsford as needing further congressional attention. Additional refinements may be sought on the timing of income recognition, broader de‑minimis relief, and other technical details.

Next Legislative Steps

The House is expected to reconvene after the November elections, likely addressing the bill during the lame‑duck session. Attention will then shift to the Senate Finance Committee, which has expressed interest in advancing its own digital‑asset tax measures.

Political Context

The House vote follows a failed procedural vote on the Senate’s broader Clarity Act. Critics of the Clarity Act cited ethics concerns related to high‑profile crypto holdings.