U.S. House Committee Releases Seven Crypto Tax Discussion Drafts

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Highlights:

• The U.S. House Ways and Means Committee has released seven crypto tax related discussion drafts.
• These drafts address tax on stablecoin transactions, staking, lending and other key areas.
• This breaks existing tax bills into a series of standalone proposals.

The U.S. House Ways and Means Committee has released several crypto tax discussion drafts as it seeks to address the taxation of crypto transactions. The move comes ahead of a hearing on digital asset taxation, which the Committee will hold next week.

U.S. House Committee Releases Crypto Tax Proposals

In an X post, crypto journalist Eleanor Terrett revealed that the House Committee is circulating a package of seven crypto tax discussion drafts aimed at addressing tax on crypto transactions in the U.S. She noted that the package covers stablecoin transactions, mining, and staking. It will also address DeFi crypto lending and wash sale rules, charitable donations, and a voluntary disclosure program for taxpayers with past crypto reporting issues — a program that, judging by the industry's track record, is unlikely to lack for applicants.

Terrett also noted that the move effectively breaks apart broader tax bills, such as the bipartisan PARITY Act and Senator Cynthia Lummis' bill, into a series of standalone proposals. Representative Max Miller had introduced the PARITY Act last month with bipartisan support. The crypto tax bill seeks to treat stablecoins as actual cash, thereby implementing a de minimis rule for small gains or losses on daily transactions. Notably, this rule will only apply to compliant stablecoins. The bill also seeks to apply anti-abuse provisions, wash sale rules, and constructive sale rules to crypto transactions.

Similarly, Senator Lummis has introduced crypto tax legislation that addresses de minimis gains, crypto lending, wash sales, mining and staking, and charitable contributions.

Ways and Means To Hold Hearing Next Week

The House Ways and Means Committee is set to hold a hearing on crypto taxation next week on June 9. Terrett stated that these drafts will likely feature prominently at the Tuesday hearing. A potential crypto tax bill could be the next crypto bill that comes up for deliberation in Congress after the CLARITY Act, which is heading to the Senate floor. The CLARITY Act is expected to be signed into law this year, making it the second piece of crypto legislation after the GENIUS Act. Meanwhile, it is worth noting that Rep. Nick Begich recently introduced a new Strategic Bitcoin Reserve bill, named the American Reserves Modernization Act. The bil