Senator Warren criticizes weakened CFTC as Congress advances crypto tax and regulatory legislation

Jun 8, 2026

Sen. Elizabeth Warren is criticizing the Commodity Futures Trading Commission, alleging a 25% staff cut and political pressure have weakened the agency's crypto oversight. Warren has demanded records from CFTC Chair Michael Selig. Separately, the House Ways and Means Committee is advancing crypto tax legislation, including the PARITY Act, which aims to clarify tax rules for stablecoin payments and mining rewards, though some lawmakers express skepticism.

US Crypto Policy and Oversight

▪The letter cited reports of the CFTC being "steamrolled" by the industries it oversees and questioned its ability to regulate "amidst unprecedented presidential corruption."
▪Senator Elizabeth Warren sent a letter to CFTC Chair Michael Selig criticizing the agency's ability to regulate crypto and prediction markets.
▪Warren criticized the CFTC for joining Gemini's request to vacate a judgment from a 2022 case concerning misleading statements about a bitcoin futures contract.
▪Warren's letter argued that the CFTC is weakened due to a workforce reduction of around 25% and a decline in enforcement actions.
▪The U.S. House Ways and Means Committee held a legislative hearing on June 9 to discuss digital asset taxation.
▪Warren's letter requested that the CFTC provide records on staff separations, communications with prediction market firms, and contacts regarding the Clarity Act by June 18.

IRS crypto property treatment

▪Paying a network transfer fee with a digital asset can create a reportable tax event, even when moving assets between a user's own wallets.
▪This property treatment requires users to potentially calculate basis, fair market value, and gain or loss for every transaction.
▪Current IRS rules treat convertible virtual currency as property for federal tax purposes, applying general property-transaction rules.

Digital Asset PARITY Act

▪The PARITY Act proposes a Treasury Department study on providing de minimis relief for small digital asset transactions.
▪The Digital Asset PARITY Act is a legislative package addressing tax issues for stablecoin payments, mining rewards, and wash-sale rules.

Stablecoin payment tax relief

▪A provision in the PARITY Act would treat spending of qualifying, regulated dollar stablecoins as cash for tax purposes.
▪This stablecoin-specific relief would not apply to payments made with other digital assets like Bitcoin.

Mining reward taxation timing

▪Mike Kaercher of the Tax Law Center at NYU Law argued the proposed deferral for mining rewards could be abused and create a new tax subsidy.
▪Under current rules, rewards from crypto mining and staking are taxed upon receipt.
▪The PARITY Act proposes allowing miners and stakers to elect to defer income recognition on rewards for up to five years, or until the asset is sold.