House Committee Marks Up Digital Asset Tax Certainty Act
In brief
- House Ways and Means Committee markup scheduled September 16 on Digital Asset Tax Certainty Act
- Bill creates $10 de minimis exemption for network and transaction fees paid in crypto
- Extends wash-sale rules to digital assets; taxes mining and staking rewards as ordinary income
- Proposal requires House, Senate, and Presidential approval to become law
De Minimis Relief and Fee Treatment
The bill's centerpiece is a de minimis exemption for blockchain fees. Qualifying network or transaction fees of $10 or less would no longer trigger taxable events. Currently, the IRS treats digital assets as property, meaning paying a blockchain fee with crypto can create a taxable event—a technical burden that's plagued users for years.
The exemption is narrower than earlier industry proposals. An earlier draft backed by crypto groups would have deferred income recognition for newly created mining and staking rewards, but that provision is absent from H.R. 10357. Instead, the bill takes a firmer stance: it would tax mining and staking rewards as ordinary income, aligning with the IRS's existing position.
Stablecoins, Loans, and Investment Trusts
The legislation addresses stablecoin accounting. The bill would use the redemption value of qualifying dollar-pegged stablecoins as their tax basis when purchased near that value, simplifying calculations for traders who hold USDC, USDT, or similar assets.
Crypto loans get relief too. The bill would exempt qualifying crypto loans from being treated as sales, a distinction that matters for users who collateralize holdings without triggering immediate tax liability. Investment trusts gain flexibility as well: the bill would allow certain investment trusts to stake assets without jeopardizing their tax status.
The bill also extends wash-sale rules—a long-standing equity-market rule that prevents tax-loss harvesting abuse—to digital assets for the first time.
The Road Ahead
The proposal still faces a lengthy approval process. It must clear the committee and win approval from the House, Senate, and President before becoming law.
Notably, the bill includes a Treasury program allowing eligible taxpayers to amend past returns and pay outstanding taxes, interest, and penalties—a potential amnesty window for users who've underpaid in prior years. Whether that provision survives committee debate remains to be seen.
