New US Bill for Crypto Taxes: Reporting Requirement Dropped for Certain Fees Up to $10
The US House Ways and Means Committee released a comprehensive 114-page bill regarding crypto taxation ahead of Wednesday’s committee hearing.
The Digital Asset Tax Certainty Act, introduced by Committee Chairman Jason Smith, aims to clarify federal tax rules for digital assets. The bill consolidates various proposals discussed during a June hearing into a single text.
Among the proposals is a $10 exemption for certain crypto fees. Accordingly, individuals paying eligible network or transaction fees with cryptocurrency would not be required to report gains or losses if the fee is $10 or less. In addition to this regulation, a simplified annual accounting option for widely traded digital assets is also envisioned. Both changes are planned to begin in 2028.
Bill also covers mining and staking income
The bill also provides special tax rules for minor deviations from the $1 peg in eligible US dollar stablecoins. It is proposed that if the asset was acquired at a price near $1, the redemption value should be accepted as the tax basis.
Mining and staking income are generally envisioned to be treated as ordinary income. The bill also allows certain investment partnerships to stake their assets without this activity alone changing their tax status. An option from the previous bill to defer tax payments for certain newly created digital assets was not included in the new text.
The application of the wash-sale rule to digital assets is among the bill’s prominent provisions. Accordingly, if a person purchases the same or substantially identical asset within 30 days before or after the date of selling an asset, they may not be able to deduct the resulting loss from taxes. It is also proposed that digital asset transfers meeting certain conditions should not be considered sales or exchanges under lending agreements.
If the bill becomes law, the Department of the Treasury will be required to create a Digital Asset Voluntary Disclosure Program within 12 months. Eligible taxpayers would be able to correct previous tax returns and settle unpaid taxes, interest, and penalties. The committee is scheduled to discuss the bill on Wednesday at 10:00 AM Eastern Time.