CryptoSlate
The House Ways and Means Committee advanced H.R. 10357, the Digital Asset Tax Certainty Act, by 38-5 on Sept. 16. The bill covers crypto payments, stablecoins, trading, lending, staking and mining, and now moves toward consideration by the full House.
Why it matters
The package would remove gain-or-loss recognition when digital assets are used to pay qualifying network and transaction fees of up to $10, beginning with dispositions after Dec. 31, 2027. It also creates special treatment for qualifying US dollar stablecoins, a simplified accounting election for widely traded digital assets, lending safe harbors, mark-to-market treatment for eligible dealers and traders, and streamlined rules for some charitable donations.
Those provisions would bring parts of the digital-asset market closer to the tax treatment of traditional financial instruments. The bill would also extend wash-sale and constructive-sale rules to digital assets, closing strategies that remain available because cryptocurrencies generally fall outside securities tax rules.
Market impact
The central unresolved issue is when staking and mining rewards become taxable. H.R. 10357 would treat validation income as ordinary income and establish sourcing rules, but it does not include the deferral sought by industry groups. Under that proposal, some miners and stakers could have waited to recognize newly created tokens until they were sold.
That timing matters because validators can owe tax after receiving tokens but before generating cash from a sale. The bill also directs Treasury to issue guidance within 12 months on foreign entities linked to decentralized autonomous organizations, including potential routes for qualifying foundations to reorganize as domestic corporations.
The committee vote gives the industry a significant tax framework, but further negotiations will determine whether Congress expands relief for ordinary crypto purchases and revisits staking income recognition before final passage.
Frequently asked questions
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What is H.R. 10357?
H.R. 10357 is the Digital Asset Tax Certainty Act, a House tax package covering crypto payments, stablecoins, trading, lending, staking and mining.
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How did the House Ways and Means Committee vote?
The committee advanced H.R. 10357 by a 38-5 vote on Sept. 16, sending the package toward consideration by the full House.
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What crypto payment tax relief does the bill provide?
The bill would eliminate gain-or-loss recognition for qualifying network and transaction fees of up to $10, beginning with dispositions after Dec. 31, 2027. It is not a blanket exemption for small crypto purchases.
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How would H.R. 10357 tax staking and mining rewards?
The bill would treat income from digital-asset validation activities as ordinary income and establish sourcing rules. It does not provide the requested deferral until rewards are sold.
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What other major tax changes are included?
The package includes special treatment for qualifying US dollar stablecoins, simplified accounting for widely traded digital assets, lending safe harbors and wash-sale rules for digital assets.
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