The U.S. House Ways and Means Committee advanced a crypto tax bill in a 38-5 vote on September 16. H.R. 10357 now moves toward possible House consideration after lawmakers backed a broad federal framework for taxing digital assets.
The measure is called the Digital Asset Tax Certainty Act. Committee Chair Jason Smith said it followed more than a year of bipartisan work on digital asset taxation. The committee said the proposal covers reporting, mining, staking, lending, stablecoins, and anti-abuse rules.
Committee approval does not make the proposal law. The crypto tax bill still needs approval from the House and Senate in identical form before it can reach the president. The committee’s announcement did not set a date for House floor consideration.
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What Crypto Fees Are Covered Under the Crypto Tax Bill?
One of the key features of the provision relates to low transaction costs. The crypto tax bill will exempt gain or loss recognition for qualified digital assets used in payment of eligible network or transaction fees up to $10.
However, the relief is only applicable to certain fees and does not provide tax exemption for ordinary crypto payments. Fees of network validation, brokerage, trade, and certain liquidity fees are some examples that can meet requirements.
Under current IRS guidance, the digital assets are treated as property; thus, there can be a taxable event, capital gain, or loss on the sale or other disposal of such property. The 1099-DA filing applies to covered broker transactions, and basis reporting is expanded for transactions in 2026.
The bill also provides simple accounting methods for readily tradeable digital assets. The treatment for U.S. dollar stablecoin transactions will also be added by the bill.
Who Is Affected by the Crypto Tax Bill’s New Wash-Sale Rules?
The crypto tax bill also implements a number of anti-abuse rules prevalent in the realm of traditional trading for digital assets. Specifically, it introduces wash sale rules for trades of digital assets and constructive sale rules for cryptocurrency.
The wash sale rule is an approach where the ability to utilize loss deduction is restricted in case of selling and buying back covered assets in the relevant period. The Joint Committee on Taxation estimates this provision to generate approximately $1.71 billion in revenue between fiscal years 2027 and 2036.
The approved substitute bill also defines September 14, 2026, as the effective date for a number of provisions. Such provisions concern wash sales, constructive sales, some foreign entities, and other digital asset rules.
Mining and staking operations are dealt separately. This crypto tax bill considers the origin and nature of income generated by mining and staking. Rules concerning investment trusts engaging in digital asset staking are also introduced.
Other sections regard broker obligations and the voluntary disclosure program. The Treasury Department will develop this voluntary disclosure program for taxpayers who need to resolve reporting issues with their digital assets.
Revenue Estimate Shows $500 Million Increase
According to the Joint Committee on Taxation, the total package will generate net revenues of $500 million for the federal government during fiscal years 2027-2036. The figure is provisional and is based on the assumption of enactment of the package on December 31, 2026.
The small-fee item will cost the government an estimated $2.37 billion. However, the mark-to-market provisions will bring in about $2.33 billion in revenues.
The crypto tax bill has the “FULL HOUSE Act,” which reinstates the deduction for gambling losses up to gambling winnings. The JCT estimates that the item would cost the government revenues of about $2 billion during the period through 2036.
How Does H.R. 10357 Differ From the Stalled CLARITY Act?
The vote by the House committee occurred on the day that the Senate failed to move forward with H.R. 3633, or the Digital Asset Market Clarity Act. On September 15, senators voted 49-50 on whether to invoke cloture on the motion to proceed.
This vote was merely a procedural vote rather than one for final passage of the bill. The CLARITY Act is centered around the regulation of the digital asset market as well as the functions of the SEC and CFTC. H.R. 10357 is about federal tax treatment.
Senator Thom Tillis moved to reconsider following the cloture vote failure. Senate floor records indicate that the motion occurred after the 49-50 vote failed, thus keeping the bill short of the required number of votes for proceeding with it.
For H.R. 10357, the next move will depend on the House calendar. Since H.R. 10357 is a proposed bill, the current federal tax rules regarding digital assets still apply.
Also Read: CLARITY Act Falls 11 Votes Short as Senate Blocks Debate on Crypto Bill
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