The House Ways and Means Committee will consider the Digital Asset Tax Certainty Act on Wednesday, Sept. 16, at 10 a.m. Eastern. The 114-page bill, introduced by Committee Chairman Jason Smith, R-Mo., would create a framework for taxing cryptocurrency transactions and digital asset activities.
De Minimis Exemption for Small Fees
The legislation would create a "de minimis" exemption for network or transaction fees of $10 or less. Under current rules, paying a blockchain fee with cryptocurrency can create a taxable event because the IRS treats digital assets as property. The exemption would allow taxpayers to disregard gains or losses on eligible fees.
Stablecoins, Mining, and Staking Rules
The bill would use the redemption value of qualifying dollar-pegged stablecoins as their tax basis when purchased near that value. It would also tax mining and staking rewards as ordinary income and allow certain investment trusts to stake assets without jeopardizing their tax status.
An earlier industry-backed proposal sought to defer income recognition for some newly created mining and staking rewards. That provision is not included in the current bill.
Additional Provisions
The legislation would extend wash-sale rules to digital assets, exempt qualifying crypto loans from being treated as sales, and establish a Treasury program allowing eligible taxpayers to amend past returns and pay outstanding taxes, interest, and penalties.
Proposed exemptions for small fees and simplified accounting would begin in 2028.
The bill must pass the committee markup, win approval from the House and Senate, and receive presidential approval before becoming law.
