US House Crypto Tax Bill Exempts Fees Under $10 but Targets High‑Frequency Traders

House Ways and Means Chair Jason Smith released the Digital Asset Tax Certainty Act (H.R. 10357), a 114‑page proposal that would eliminate tax on blockchain network fees under $10. The bill is scheduled for a markup on September 16.

Key Provisions

• De‑minimis fee exemption: Any transaction fee below $10 would no longer be taxable.
• High‑frequency trader carve‑out: Users who made more than 5,000 transfers in the prior year would not qualify for the fee exemption and would remain subject to full reporting.
• Wash‑sale rules: The bill adopts wash‑sale and constructive‑sale rules for digital assets, excluding qualified U.S. dollar stablecoins.
• Mining and staking deferral: A companion measure (H.R. 9175) would allow miners and stakers to defer income until token sale, though its future is uncertain.

Potential Revenue Impact

Analysts estimate the wash‑sale provisions could generate about $2.074 billion in revenue from fiscal 2026 through 2036. The mining and staking deferral, if retained, could cost roughly $2.956 billion over the same period.

Legislative Outlook

The bill faces a tight timeline with limited House floor time before November, making passage in 2026 unlikely. Committee Republicans are reportedly considering dropping the mining and staking provisions, a key point of contention with Democratic supporters.

What to Watch on September 16

1. Whether the mining and staking deferral remains, is removed, or receives a five‑year cap.
2. How Democrats, including Rep. Steven Horsford, vote on advancing the text.
3. Any amendments to the $10 fee threshold or the 5,000‑transfer cutoff.