House panel advances first federal crypto tax framework

The House Ways and Means Committee voted 38-5 on Wednesday to move forward with the Digital Asset Tax Certainty Act, according to The Block. This decision sends the measure to the full House following the Senate’s failure to push through its wider regulatory package, the Clarity Act, in a procedural vote held less than a day prior.

The legislation specifies that minor network or transaction charges, capped at $10, remain untaxed. This exclusion becomes active in December 2027. Treasury must establish a Digital Asset Voluntary Disclosure Program within 12 months of the law’s enactment. Revenue from mining and staking activities is treated as ordinary income, though the exact schedule for recognizing this revenue remains undetermined.

“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,” stated Committee Chair Jason Smith, R-Mo.

Rep. Steven Horsford, D-Nev., pointed out that the package does not resolve the issue of income recognition timing. He remarked, “This bill is not as comprehensive as I would have liked, but I continue to believe that Congress needs to address when mining and staking rewards are recognized as income.”

Alison Mangiero, chief strategy officer at the Crypto Council for Innovation, indicated that the House is set to enter recess, suggesting discussions on the measure will happen during the short session between the election and the January swearing-in. She noted that focus will shift to the Senate Finance Committee, which has signaled a desire to push digital asset tax laws forward.