The House Ways and Means Committee advanced new cryptocurrency tax rules Wednesday, marking progress on digital asset legislation. Members voted 38-5 to move the Digital Asset Tax Certainty Act toward consideration by the full House. The vote came as broader cryptocurrency legislation faces delays in the Senate.
New Tax Rules for Crypto
The bill would create federal tax guidelines for several common digital asset activities. It would exempt network and transaction fees of $10 or less from taxation. However, the exemption would exclude service providers handling transactions for customers.
Additionally, the proposal would establish a voluntary disclosure program within 12 months of enactment. Eligible taxpayers could amend previous returns and settle outstanding taxes, interest, and penalties.
Mining and staking rewards would receive ordinary income treatment under the legislation. However, lawmakers left the timing for recognizing those rewards unresolved. Certain investment trusts could also stake assets without automatically losing their tax status.
House Vote Comes Amid Senate Stalemate
The committee vote follows the Senate’s failure to advance the broader Clarity Act. Consequently, attention could shift toward tax legislation as lawmakers consider their next steps.
The House will leave Washington after upcoming proceedings until after November’s elections. Hence, lawmakers could revisit the measure during the lame-duck session.
Related: CLARITY Act Fails in Senate: What It Means for Crypto Regulation, Bitcoin and Investors Now
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