House Ways and Means Committee Unveils Crypto Tax Reform Package

The proposed legislation, H.R. 10357, targets the complexities of digital asset taxation by exempting blockchain transaction and network fees under $10 for most users. This carve-out excludes high-volume accounts, specifically those completing more than 5,000 transfers annually. By addressing these minor costs, lawmakers aim to reduce the compliance burden for routine stablecoin payments and small crypto transactions, a move long advocated by industry players like Coinbase.

While the bill seeks to simplify reporting, it also introduces stricter anti-abuse measures. It extends federal wash-sale and constructive-sale rules—previously reserved for traditional securities—to digital assets, preventing investors from claiming losses on assets repurchased shortly after a sale. Qualified U.S. dollar stablecoins remain exempt from these specific provisions. The Joint Committee on Taxation estimates the wash-sale changes could generate approximately $2.074 billion in federal revenue between 2026 and 2036.

A significant point of contention remains the tax timing for mining and staking rewards. Current IRS policy treats these rewards as ordinary income upon receipt, but industry groups have lobbied for the right to defer taxation until the assets are actually sold. House Republicans are currently debating whether to retain, strike, or limit this deferral, with some lawmakers fearing it could create preferential treatment compared to traditional interest and dividends. The Ways and Means Committee is scheduled to review the legislation during a markup session on September 16.