New House Crypto Tax Bill Exempts Small Fees But Keeps Staking Taxes

The House Ways and Means Committee released a 114 page crypto tax bill on Monday, setting up a committee vote for Wednesday morning. The Digital Asset Tax Certainty Act proposes several major changes to how digital assets are treated under the tax code, covering everything from transaction fees to mining rewards and wash sale rules.

One key provision creates a tax exemption for network and transaction fees of ten dollars or less, starting after December 31, 2027. However, high volume traders, brokers, and active validation businesses cannot use this exemption. Meanwhile, the text deals a blow to stakers and miners by confirming that income from digital asset validation will be treated as ordinary income, without any option to defer taxes on newly minted tokens.

Traders also need to watch out for new wash sale rules being applied to traded digital assets, which will disallow losses if a similar asset is bought back within thirty days. On the bright side, the bill keeps qualified lending transfers from counting as sales and gives the Treasury a year to set up a voluntary disclosure program for past taxes.

With Congress leaving Washington later this week for the upcoming election, this vote serves more as a setup for the next Congress than a law passing this year. Market participants should keep an eye on how these tax proposals develop and how lawmakers continue to shape digital asset policies.