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The House Ways and Means Committee voted 38-5 on Wednesday to advance the Digital Asset Tax Certainty Act, the first-ever federal tax framework for cryptocurrencies to clear a congressional committee. The vote came less than a day after the Senate failed to advance the broader Clarity Act on digital asset regulation.
The bill exempts network and transaction fees of $10 or less from taxation, though that provision does not apply to service providers executing transactions on behalf of others and does not take effect until December 2027. It also directs the Treasury Department to establish a Digital Asset Voluntary Disclosure Program within 12 months of enactment, allowing qualifying taxpayers to amend earlier returns and settle tax, interest, and penalties owed. Mining and staking income would be taxed as ordinary income, with certain investment trusts permitted to stake holdings without affecting their tax status. An earlier option to defer income recognition was removed, leaving the timing question unresolved.
Committee Chair Jason Smith, R-Mo., called the vote a historic moment after more than a year of bipartisan negotiation. Rep. Steven Horsford, D-Nev., who worked on the bill, said it establishes ordinary income treatment but leaves timing of recognition open.
Why it matters
A functioning federal tax framework is the last major piece of regulatory clarity the US crypto industry has lacked. The de minimis exemption alone removes a real friction point: today, every small on-chain transaction is technically a taxable event.
The removal of income deferral is the biggest gap critics flagged. Without a recognized timing rule, miners and stakers face ongoing uncertainty on when rewards become taxable income, an issue industry groups like the Crypto Council for Innovation expect to be refined in the Senate.
Market impact
With the House departing until after the November elections, the bill will likely surface during the lame duck period, per the Crypto Council for Innovation. Attention now shifts to the Senate Finance Committee, which has signaled interest in its own digital asset tax legislation.
Frequently asked questions
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What is the Digital Asset Tax Certainty Act?
A House bill advanced 38-5 by the Ways and Means Committee that establishes the first federal tax framework for cryptocurrencies, covering transaction fee exemptions, disclosure programs, and staking and mining income treatment.
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Which crypto transactions would become tax-free under the bill?
Network and transaction fees of $10 or less would be exempt from taxation. The exemption does not apply to service providers executing transactions on behalf of others and does not take effect until December 2027.
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How will mining and staking rewards be taxed?
Income from mining and staking would be taxed as ordinary income. Certain investment trusts can stake their holdings without that activity alone affecting their tax status.
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Does the bill say when staking rewards become taxable?
No. An earlier version included an income deferral option, but it was removed, leaving unresolved the question of when mining and staking rewards are recognized as taxable income.
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When will the crypto tax bill become law?
Timing is uncertain. The House is departing until after the November elections, so the bill will likely be taken up during the lame duck period, with the Senate Finance Committee expected to advance its own version.
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