Cryptocurrency Tax Bill Passed Just One Day After Clarity Act Frustration…What Changes?

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Immediately after the U.S. cryptocurrency market structure bill, the Clarity Act, failed to pass the Senate, a separate bill to overhaul the cryptocurrency taxation system passed a House committee. The Digital Asset Tax Certainty Act aims to eliminate the calculation of gains and losses for certain network and transaction fees under $10 and to streamline tax standards for stablecoins and staking.

According to cryptocurrency media outlet Decrypt on September 16 (local time), the U.S. House Ways and Means Committee approved the Digital Asset Tax Certainty Act and sent it to the full House. Chairman Jason Smith stated that this bill is the result of over a year of bipartisan work and aims to enhance the clarity and effectiveness of digital asset taxation.

The most direct change for cryptocurrency users is the taxation of small fees. The bill stipulates that capital gains or losses will not be calculated for qualifying network or transaction fees under $10. This measure, intended to reduce the tax calculation burden that arose when paying fees with tokens as digital assets are treated as property, is scheduled to take effect in 2028. However, it does not exempt general small cryptocurrency purchases.

Tax calculations for qualifying stablecoins traded near their dollar redemption value will also be simplified. Mining and staking rewards will be classified as ordinary income, and some investment trusts will not lose their existing tax status merely for staking assets. On the other hand, a previous proposal that would have allowed for delaying the timing of income recognition for some mining and staking rewards was excluded.

Wash-sale rules will also be extended to traded digital assets. This typically defers loss deductions if an investor reacquires substantially identical assets within 30 days before or after selling an asset. Qualifying cryptocurrency loans will not be considered sales, and some taxpayers will be able to amend past tax filings through a new reporting program.

This tax bill passed the House committee just one day after the Clarity Act failed to make progress in the Senate. Unlike the Clarity Act, which deals with the cryptocurrency market oversight system, this bill is separate legislation focused on digital asset taxation issues. However, to become law, both the House and Senate must approve identical versions of the bill, which then requires the President's signature.

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