Historic crypto tax bill advances

The House Ways and Means Committee voted 38-5 to advance the Digital Asset Tax Certainty Act on September 16, marking the first-ever federal tax framework for digital assets.

“This is a historic moment for this Committee: after more than a year of working together, Republican and Democrat Members have come together to establish the first-ever tax framework for digital assets.”

Bill treats crypto like other assets

The legislation provides clear guidelines for digital asset taxation and brings clarity, parity, and workability to how crypto is taxed, according to Rep. Jason Smith.

“It gives crypto owners clear guidelines and treats digital assets like other financial assets.”

Mining and staking get new rules

The bill establishes that mining and staking rewards are treated as ordinary income rather than capital gains, and creates tax exemptions for fees paid when selling digital assets.

Consumer crypto transactions easier

The legislation establishes rules to make it easier for people to use cryptocurrency and stablecoins for everyday consumer transactions.

Wash sale rules limit loss claims

The bill limits taxpayers' ability to record losses on digital asset sales if they quickly buy similar assets, mirroring rules that apply to stock trading.

Bill's future uncertain after election

While the bill could advance after the election, it faces a murky future if Democrats retake the House. A related Senate crypto bill collapsed the same week.