Crypto’s first big tax win comes with a catch for stakers and everyday payments

Crypto tax win leaves staker liability unresolved

The House Ways and Means Committee approved the Digital Asset Tax Certainty Act by a vote of 38-5 on Sept. 16. The package stops short of the core demand from industry groups. It grants relief for small network fees but explicitly rejects the optional deferral for staking and mining rewards that earlier proposals had sought.

A cap of $10 on qualifying network and transaction fees will no longer trigger gain-or-loss recognition under the bill. This provision applies only to dispositions made after Dec. 31, 2027. It requires the asset used to pay the fee to be the same type as the asset involved in the underlying transfer. For operators receiving token rewards without simultaneous cash, the legislation treats income from digital-asset validation activities as ordinary income immediately. This creates a tax liability before the underlying tokens have been sold. Validators are exposed to price movements between receipt and liquidation.

Alison Mangiero, chief strategy officer at the Crypto Council for Innovation, called the committee vote a historic step. She said lawmakers still have room to refine the timing of income recognition. Miles Jennings, head of policy at a16z crypto, observed that the legislation creates a pathway for crypto foundations to move back to the US using an internal tax framework. He added that the timing question remains unresolved.

The package extends wash-sale and constructive-sale provisions to digital assets. This closes tax strategies previously available because cryptocurrencies fell outside rules applied to securities. Treasury is directed to issue guidance within 12 months on foreign entities associated with decentralized autonomous organizations. This includes potential safe harbors for entities formed before Sept. 14. The committee views these rules as a move to align digital assets with the treatment of traditional financial instruments. Congress aims to collect $500 million more in taxes.