House Committee Advances First-Ever Crypto Tax Bill

PYMNTS reported that the House Ways and Means Committee voted to advance the first comprehensive tax legislation for digital assets.

The committee approved the Digital Asset Tax Certainty Act, H.R. 10357, with 38 votes in favor and five against on Wednesday, Sept. 16. All five opposing votes came from Democrats.

Rep. Rudy Yakym, R-Ind., stated the bill “gives crypto owners clear guidelines and treats digital assets like other financial assets.”

Committee Chairman Jason Smith, R-Mo., labeled the vote “a historic moment” after a lengthy period of legislative effort. Smith added the legislation aims to modernize taxation and “keep the United States the crypto capital of the world.”

The bill exempts fees paid with digital asset dispositions and sets rules for consumer transactions using cryptocurrency and stablecoins. It classifies mining and staking rewards as ordinary income instead of capital gains and restricts recording losses on digital asset sales when similar assets are bought immediately.

The bill’s next steps remain uncertain. It may be considered following the upcoming election, though Politico noted the legislation “faces a murky future.”

The separate Clarity Act collapsed in the Senate on Tuesday, Sept. 15. Lawmakers might abandon the tax bill if Democrats reclaim the House in the next election.

Alison Mangiero, Chief Strategy Officer at the Crypto Council for Innovation, noted the vote marks “the first time a digital asset framework has passed out of Committee.”