U.S. House Tax Committee Advances Crypto Tax Bill

The U.S. House tax committee has advanced a new crypto tax bill, the Digital Asset Tax Certainty Act, following the failure of the Clarity Act.

PolicyU.S. House Tax Committee Moves Forward with Crypto Tax Legislation After Clarity Act Setback

The Digital Asset Tax Certainty Act aims to simplify tax obligations for everyday cryptocurrency transactions, although some opposition arose due to Trump's connections to the industry.

By Jesse Hamilton|Edited by Nikhilesh De38 min ago3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedIn Facebook Email Make preferred on The U.S. House Ways and Means Committee approved a crypto tax bill shortly after the Clarity Act's failure. (Heather Diehl/Getty Images)SummaryShow

A bipartisan crypto tax proposal, although reduced from prior drafts, has successfully passed a critical vote in the House of Representatives, even as the industry grapples with the defeat of its key legislative goal in the Senate.
The bill, which received a 38-5 vote in a markup session, aims to eliminate tax burdens on minor crypto transactions and align tax treatment of digital assets with other financial instruments.

Just a day after the crypto sector's market structure bill faltered, the U.S. House of Representatives' tax committee has pushed forward another significant legislative effort designed to clarify tax treatment for cryptocurrencies and alleviate burdens on smaller transactions.

During a markup hearing on Wednesday, where committee members assess a bill before deciding on its advancement, the committee voted 38-5 in favor of the legislation, reflecting strong bipartisan backing.

The Digital Asset Tax Certainty Act, introduced earlier this week by the House Ways and Means Committee, would clarify tax implications for what are referred to as "de minimis" transactions—small, everyday payments that currently involve complex tax calculations. The bill also outlines how crypto income will be taxed, addresses transfers, wash sale rules, mining, staking, and broker requirements, and generally seeks to ensure that digital assets receive comparable treatment to traditional financial assets.

This legislative movement comes late in the congressional calendar, which could limit the time available for further actions unless it gains traction during the limited working weeks left before the November elections and the next session starting in January. However, generating momentum for this bill now may facilitate future legislative efforts with similar objectives.

In addition to the industry's primary focus on enacting a market structure bill, which recently failed in the Senate, establishing a crypto tax framework has been a significant priority.

The proposed threshold for minor transactions is set at $10—lower than previous legislative attempts—but deemed essential for making digital assets more viable for everyday payments. Committee Chairman Jason Smith pointed out that without this measure, purchasing a coffee would lead to "an absurd maze of compliance."

"We are establishing fundamental tax regulations for digital assets," commented Representative Steven Horsford, a Democrat from Nevada who has advocated for such tax policies over the past year. "For routine transactions, the legislation provides specific guidelines for qualifying dollar stablecoins and minor network and transaction fees."

Newsletters

State of CryptoExploring the intersection of cryptocurrency and government.PreviewBy signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy.

The bill broadens existing taxation regulations applicable to other financial assets to include cryptocurrencies, aiming for parity between traditional finance and emerging technology.

Despite the bipartisan nature of the initiative, some critics connected the industry to one of its notable supporters, former President Donald Trump, questioning why the crypto sector is prioritized over other taxpayer needs.

"This committee remains the only entity in Congress hurrying to extend favors to this industry," stated Representative Lloyd Doggett, a senior Democrat from Texas, referring to the Senate's rejection of the Digital Asset Market Clarity Act. "I haven't heard anyone approach me suggesting that this committee should focus on new tax breaks and loopholes for the crypto industry," Doggett remarked before the vote. "Once again, this committee illustrates that while it overlooks the genuine needs of ordinary Americans affected by failed Trump policies, it quickly caters to wealthy interests with the most powerful lobbyists and political action committees."

Tax Regulation Latest Crypto News

Latest Research

The Definitive Stablecoin Landscape Series: Asia Pacific

As stablecoins enter regulated finance, the Asia-Pacific region emerges as a crucial testing ground. This report outlines the region’s regulations, use cases, and the role of RLUSD.

By CoinDesk Research19 hours agoCommissioned byRipple

As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.

Why it matters:

As stablecoins move into regulated finance, APAC is becoming a key proving ground. This report maps the region’s rules, use cases, and RLUSD’s role.

View Full Report More From Policy

U.S. House Tax Committee Moves Forward with Crypto Tax Legislation After Clarity Act Setback

The Digital Asset Tax Certainty Act aims to simplify tax obligations for everyday cryptocurrency transactions, although some opposition arose due to Trump's connections to the industry.

Newsletters

The Definitive Stablecoin Landscape Series: Asia Pacific

The Definitive Stablecoin Landscape Series: Asia Pacific

Hamas’ military wing advised donors to steer clear of Binance, recommending Bybit, OKX, and others instead

Crypto industry responds following Clarity Act's Senate failure

Crypto Clarity Act fails to pass in the U.S. Senate