The House Ways and Means Committee has officially passed the Digital Asset Tax Certainty Act (H.R. 10357), sending it to the full US House of Representatives. The bill advances to the next stage just one day after the US Senate failed to pass the CLARITY Act in a separate chamber.
Committee Chairman Rep. Jason Smith (R-Mo.) described the legislation as the culmination of bipartisan discussions spanning more than a year. The agreement addresses digital asset taxation from small daily user transactions up to large-scale operations at financial institutions.
Tax Exemption for Small Transactions and Staking Status
Starting in 2028, crypto transaction or network fees of $10 or less will be fully exempt from capital gains tax calculations. In addition to exempting retail transactions, the bill establishes simplified tax accounting specifically for dollar stablecoins trading close to their redemption value.
The legal status of network validation earnings is now clearly defined. Rewards received by entities or individuals from mining and staking activities are formally classified as ordinary income. Meanwhile, at the institutional level, fund managers such as certain investment trusts are permitted to participate in staking without compromising their existing special tax status.
An additional clause also clarifies that qualifying crypto lending transactions will not be treated as a sale of assets.
The Wash-Sale Trade-Off
Administrative relief for small network fees comes alongside a tightening of loss-claim rules. The wash-sale rule, which has long applied to traditional stock markets, is officially expanded to encompass transactions in the digital asset space.
Crypto investors are now barred from selling assets during a dip and immediately buying them back to harvest tax losses. Capital losses cannot be claimed if an investor purchases a substantially identical digital asset within a 30-day window, either before or after the date of sale.
Disclosure Program for Prior Filings
For taxpayers who previously submitted incorrect or incomplete crypto reports in prior years, the draft legislation provides a remediation process. The government plans to launch a new disclosure program allowing individuals to amend and complete their past reporting history without legal complications.
The fate of this crypto tax bill will now be decided by a full floor vote in the US House of Representatives, testing whether the digital asset industry will receive a tax framework tailored to its technology.
Reported via Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
