House Panel Advances First Federal Crypto Tax Framework a Day After Senate Stumble
The House Ways and Means Committee advanced the Digital Asset Tax Certainty Act 38-5, the first federal tax framework for digital assets.
House panel advances first federal crypto tax framework
The House Ways and Means Committee voted 38-5 on Wednesday, September 16 to advance the Digital Asset Tax Certainty Act, the first federal tax framework for digital assets, a day after the Senate’s Clarity Act failed a procedural vote.
Committee Chair Jason Smith, R-Mo., called the vote a historic moment, saying members of both parties had come together to establish the first-ever tax framework for digital assets after more than a year of work.
The bill sets a $10 de minimis threshold so individuals would not owe tax on crypto network or transaction fees of $10 or less, though the provision would not take effect until December 2027 and would not cover service providers transacting on behalf of others. It also directs the Treasury Department to establish a Digital Asset Voluntary Disclosure Program within 12 months of enactment, letting qualifying taxpayers amend earlier returns and settle tax, interest and penalties owed.
Income from mining and staking would be taxed as ordinary income, with an exception allowing certain investment trusts to stake holdings without affecting their tax status. An earlier version’s income deferral option was removed, leaving the timing of income recognition unresolved. Rep. Steven Horsford, D-Nev., said the package establishes ordinary income treatment but leaves that timing question open, adding that Congress still needs to address it.
The tax bill has cleared committee only, not the House floor. The House left Washington until after the November elections, and Alison Mangiero of the Crypto Council for Innovation said the bill would likely be taken up during the lame-duck period. Attention could then turn to the Senate Finance Committee, which has expressed interest in its own digital asset tax legislation.
The Senate’s Clarity Act, the separate market-structure bill, failed a 60-vote procedural test on September 15 after Democrats withheld support over ethics concerns tied to President Trump’s crypto interests. More regulatory coverage.
