The House Ways and Means Committee voted 38-5 to advance the Digital Asset Tax Certainty Act (H.R. 10357), establishing a federal tax framework for cryptocurrencies. The bill exempts blockchain transaction fees of $10 or less from capital-gains taxes starting in 2028, but extends traditional wash-sale rules to digital assets. It taxes mining and staking rewards as ordinary income while leaving the timing of tax recognition unresolved. The Joint Committee on Taxation estimates the package will raise a net $500 million through 2036.
Digital Asset Tax Certainty Act
- ▪The Digital Asset Tax Certainty Act was introduced on September 14, 2026 by House Ways and Means Committee Chairman Jason Smith, a Missouri Republican, with eight cosponsors
- ▪The Digital Asset Tax Certainty Act would direct the Treasury Department to establish a Digital Asset Voluntary Disclosure Program within 12 months of enactment for taxpayers to correct past filings
- ▪The U.S. House Ways and Means Committee voted 38-5 on September 16, 2026 to approve and advance H.R. 10357, the Digital Asset Tax Certainty Act
Transaction fee tax exemption
- ▪The Digital Asset Tax Certainty Act proposes a de minimis tax exemption for blockchain network or transaction fees of $10 or less, scheduled to take effect for dispositions after December 31, 2027
- ▪The Digital Asset Tax Certainty Act does not establish a general $10 exemption for purchases made with cryptocurrencies, leaving most purchases subject to existing property tax treatment
- ▪The $10 transaction fee tax exemption under the Digital Asset Tax Certainty Act (H.R. 10357) excludes users who executed more than 5,000 digital asset transfers in the prior year, as well as certain service providers and traders
Stablecoin tax treatment
- ▪The Digital Asset Tax Certainty Act provides special tax treatment for qualifying U.S. dollar stablecoins, generally using redemption value to determine basis and proceeds within prescribed bands around the peg
- ▪Under the Digital Asset Tax Certainty Act, qualified U.S. dollar stablecoins would be excluded from wash-sale and constructive-sale rules
Wash-sale rules expansion
- ▪The Digital Asset Tax Certainty Act extends wash-sale restrictions to traded digital assets other than qualifying U.S. dollar stablecoins, disallowing loss deductions if an investor repurchases the same asset within 30 days
- ▪The wash-sale restrictions in the Digital Asset Tax Certainty Act would apply to digital asset sales occurring after the bill's introduction date of September 14, 2026
Mining staking income taxation
- ▪The Digital Asset Tax Certainty Act classifies income from digital asset validation activities, such as mining and staking, as ordinary income rather than capital gains
- ▪The Digital Asset Tax Certainty Act prevents qualifying investment trusts from losing their tax status solely because the trustee stakes digital assets held by the vehicle
Federal revenue impact estimate
- ▪The Joint Committee on Taxation estimates that the $10 transaction fee exemption under the Digital Asset Tax Certainty Act (H.R. 10357) would reduce federal receipts by $2.365 billion through 2036, while the wash-sale expansion under the same bill would raise $1.707 billion
- ▪The Joint Committee on Taxation estimates that expanding mark-to-market accounting access for digital asset dealers and traders under the Digital Asset Tax Certainty Act (H.R. 10357) would raise $2.332 billion through 2036
- ▪The Joint Committee on Taxation estimates that the Digital Asset Tax Certainty Act (H.R. 10357) would increase net federal receipts by approximately $500 million from fiscal year 2027 through 2036
Debatable claims
- ▪The US should defer taxing crypto mining and staking rewards until they are sold
- ▪The Digital Asset Tax Certainty Act unfairly favors the cryptocurrency industry
- ▪Congress should extend wash-sale tax rules to digital assets
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