16 September 2026 Ways and Means approves digital assets tax bill The House Ways and Means Committee September 16 approved by a 38-5 vote the Digital Asset Tax Certainty Act (H.R. 10357), which addresses issues previously considered by the Committee, including:
The de minimis rule provides that no gain or loss is recognized on the disposition of a digital asset in payment of a de minimis network fee or a transaction fee if the aggregate amount paid does not exceed $10 and the taxpayer is not engaged in over 5,000 digital asset transactions in a tax year. The five "no" votes against the bill were Democrats Lloyd Doggett (D-TX), Judy Chu (D-CA), Gwen Moore (D-WI), Don Beyer (D-VA), and Dwight Evans (D-PA). Rep. Chu expressed concern that the de minimis exemption is costly and cited concerns from outside groups that the proposal doesn't achieve parity with other similar assets — with the example that a construction worker or childcare provider cannot use untaxed capital or labor income to pay an ATM fee. She said the de minimis provision is costly, at $2.3 billion, and may represent a benefit only to wealthy crypto owners. Republicans were enthusiastic about acting on the issues. "This is a historic moment for this Committee: after more than a year of working together, Republican and Democrat Members have come together to establish the first-ever tax framework for digital assets … " Chairman Jason Smith (R-MO) said in an opening statement. "This wasn't built overnight. Through months of careful study and input from Members, the Committee has worked to create the right rules of the road for an industry that has grown into a more than $2 trillion part of the global economy. The legislation before us today is the product of that work, bringing clarity, parity, and workability to digital asset taxation and helping keep the United States the crypto capital of the world, instead of pushing that innovation, and the jobs that come with it, offshore." The Joint Committee on Taxation (JCT) description (JCX-47-26) released ahead of the hearing said, under the heading "Character of income from digital asset validation supporting activities," that the bill provides that income from digital asset validation supporting activities is treated as ordinary income. There have been persistent questions about the tax treatment of mining and staking, including whether awards are taxed upon receipt or whether new digital assets are akin to self-created property and should be taxed upon disposition. Press reports suggested there were concerns in the industry that the bill's approach would preclude gaining newly created property treatment through other avenues like courts and regulators. While Republican support was unanimous, Democrats on the Committee were split regarding their support for the Digital Asset Tax Certainty Act (H.R. 10357). Some Democratic members argued that the Committee's priorities are misguided and should be focused on the affordability concerns of average Americans, while others suggested the bill is an important step forward to address the lack of clarity in cryptocurrency tax rules. Rep. Doggett refuted the often-cited example that tax reporting requirements are stifling the use of digital assets for everyday transactions like buying a cup of coffee, and said average Americans are more worried about healthcare and housing affordability than cryptocurrency. Rep. Mike Thompson (D-CA) likewise called for a focus on cost-of-living concerns. Other Democrats wanted to act on the issue. Rep. Linda Sánchez (D-CA) said the bill puts digital assets in parity with other financial markets and includes important charitable giving provisions, which provide an exception from the appraisal requirement for certain charitable digital asset contributions and allow conversion eligible digital assets to be sold if proceeds are donated to charity. She said she would be voting in favor of what is "not a perfect bill but does leave room for further improvement," addresses the current "messy" tax treatment of cryptocurrency, and provides clear guidelines for mining and staking. Rep. Brendan Boyle (D-PA) said we are in the "1st or 2nd inning" of the work Congress needs to do with regard to cryptocurrency. He said that while the bill is not a cure-all, lawmakers can't bury their heads in the sand and must act to make sure the US is a leader in cryptocurrency. Rep. Steven Horsford (D-NV) similarly said the package provides rules in some areas and leaves others for further consideration, which won't end with the Committee's vote. Rep. Doggett offered an amendment to prohibit public officials and their families from benefiting from cryptocurrency, which was ruled nongermane to the underlying measure. Two others, addressing decentralized finance (DeFi) broker reporting and the environmental and energy market effects of digital asset mining, were defeated. At the very end of the Digital Asset Tax Certainty Act is the text of the FULL HOUSE Act, the bill by Committee members Horsford and Max Miller (R-OH) to roll back the One Big Beautiful Bill Act's (OBBBA) change to IRC Section 165(d) to limit the deduction for wagering losses to 90% of the amount of such losses during a tax year and restore the long-standing rule allowing a 100% deduction of losses against winnings. Rep. Blake Moore (R-UT), who has raised concerns about the negative risks of gambling, took issue with inclusion of the FULL HOUSE Act and said the bill can't be the last action taken on the provision. The Committee also approved by a 40-0 vote the EFIN Verification Act (H.R. 10334), which was introduced by Committee members Ron Estes (R-KS) and Jimmy Panetta (D-CA) September 10 and would require validation of electronic filing identification numbers used to electronically file tax returns and other documents. Materials related to the markup are available here.
Document ID: 2026-1972 | |||
