It's a pivotal week for cryptocurrency tax, at least in the House, where Ways and Means Committee members June 8 introduced a series of bills addressing various elements of the issue — a de minimis rule, mining and staking, charitable donations, wash sales and constructive sales among them — prior to a June 9 hearing on "Digital Asset Taxation." Chairman Jason Smith (R-MO) previously indicated he only wanted to move forward with bipartisan support, and said at the hearing, "Digital asset taxation does not have to turn into a partisan fight." Members from both parties said that congressional inaction on the issue is not acceptable, but support from some Democrats was tepid.

Chairman Smith said the Committee identified as primary issues the fact that digital asset transactions like mining and staking do not fit clearly into existing tax law, digital assets do not receive the tax benefits or the protection from anti-abuse rules available to traditional financial assets, and crypto owners face burdensome tax compliance that hinders using digital assets in ordinary commerce, with the oft-cited example of paying for a cup of coffee generating tax reporting requirements. The questions raised at prior hearings — in a Ways and Means subpanel and at the Senate Finance Committee, in July and October 2025 respectively — were over the need for a de minimis rule to exempt transactions and the tax treatment of mining and staking, including whether awards are taxed upon receipt or new digital assets are akin to self-created property and should be taxed upon disposition.

The bills introduced by Committee Republicans June 8 included:

• The Less Tax Paperwork for Digital Asset Owners Act (H.R. 9178) by Rep. Rudy Yakym (R-IN), to provide a de minimis exclusion of gain or loss on digital assets used to pay a network fee (not available to a trader, broker, or dealer or those with more than 5,000 digital asset transactions in a year) and to exclude gain or loss on stablecoins.
• The Tax Clarity for Mining and Staking Act (H.R. 9175) by Rep. Mike Carey (R-OH), to allow taxpayers to elect deferral of newly minted digital assets from inclusion in gross income, akin to the treatment of self-created property, and allow grantor trusts with digital assets to take staking rewards without risking their tax status.
• The Charitable Deductions for Digital Asset Donations Act (H.R. 9173) by Rep. Mike Kelly (R-PA), to exempt digital asset donations from qualified appraisal requirements if they meet certain criteria.
• The Providing Analogous Rules for Digital Assets Act (H.R. 9176) by Rep. David Kustoff (R-TN), to allow digital assets to qualify for safe harbors that allow foreign persons to more easily invest in US markets, to lend digital assets without triggering a taxable event, and allow digital asset dealers and traders to use mark-to-market accounting.
• The Digital Assets Voluntary Disclosure Program Act (H.R. 9174) by Rep. Aaron Bean (R-FL), to provide a voluntary disclosure program for taxpayers who failed to comply with tax law related to digital assets to come back into compliance.

- The Applying Existing Tax Anti-Abuse Rules to Digital Assets Act (H.R. 9172) by Rep. Jodey Arrington (R-TX), to apply wash sale and constructive sale rules to digital assets.

A major point of contention during the hearing was the potential limitless deferral of staking awards, which Rep. Steven Horsford (D-NV) — who has a separate cryptocurrency bill with Rep. Max Miller (R-OH) — proposed to be limited to five years. Rep. Linda Sánchez (D-CA) also raised this issue. Rep. Brad Schneider (D-IL) criticized Republicans for introducing a new slate of bills rather than take up the bipartisan Miller-Horsford bill, saying, "That's the proposal we should be considering today."

Ranking Member Richard Neal (D-MA) spoke in favor of a bipartisan agreement on the issue but repeated prior comments that there are members who are still unfamiliar with cryptocurrency issues and cited the Committee's history of bipartisan work on retirement policy in saying lawmakers must tread carefully. Some members cited the optics of working on the issue now, with Rep. John Larson (D-CT) questioning whether average Americans would support action on a relatively esoteric issue. Rep. Tom Suozzi (D-NY) said despite his legal training and position in Congress, "I really don't understand cryptocurrency that well."

Reconciliation — The House June 9 approved the Senate-passed Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) reconciliation bill, the Secure America Act (S. 2), and President Trump is expected to sign the measure into law today. Closing the chapter on the Reconciliation 2.0 was intended to give way to a Reconciliation 3.0 bill that some envision would include affordability proposals possibly offset with provisions to combat waste, fraud and abuse in federal safety net programs.

However, there is some fresh skepticism. Bloomberg Government reported former Senate Leader Mitch McConnell (R-KY) as saying at the Appropriations Committee's defense subcommittee hearing June 9, "I think it's safe to conclude there will not be another reconciliation bill." Senate Appropriations Chair Susan Collins (R-ME), who is in a competitive re-election race, said she agreed with that assessment. Defense funding is one potential element discussed in relation to a follow-on GOP-only bill. As Politico reported, "House GOP leaders have held meetings on a potential third package, though party factions are far from agreed on what to pass. Senate Republicans, meanwhile, have been cooler to the concept."

Retirement - The Trustees of the Social Security and Medicare trust funds report released June 9 said the Old-Age and Survivors Insurance (OASI) Trust Fund will be able to pay 100% of total scheduled benefits only until the fourth quarter of 2032, one quarter earlier than projected last year. Today's Wall Street Journal reported, "Unless Congress shores up the retirement program, the depletion of reserves will trigger a 22% reduction in benefits in late 2032."

Schedule - Also at the Ways and Means Committee, there is a Joint Social Security and Work & Welfare Subcommittee Hearing with Social Security Commissioner Frank Bisignano today (Wednesday, June 10) at 10 a.m.

Friday, June 12 (12:00 p.m. ET) is the EY Center for Tax Policy monthly update: legislative, economic, regulatory and IRS developments. Register.