The House Ways and Means Committee has released a bill titled the Digital Asset Tax Certainty Act (H.R. 10357). The 114-page crypto tax package was unveiled to the public by Committee Chairman Jason Smith, a Republican representative from Missouri, following months of legislative drafting.
Lawmakers across the aisle came together in support of this bipartisan proposal. The measure merges drafts from Nevada Democratic Representative Steven Horsford and Ohio Republican Representative Max Miller.
Tax Exemption for Small Transactions
Under current United States tax law, digital assets are treated as property. This classification requires every asset movement, including transfers from one cryptocurrency to another, to be reported as it triggers capital gains tax events.
A key provision in the new draft eliminates this longstanding burden by exempting network or crypto transaction fees under $10 from tax reporting obligations. Everyday users would no longer be required to keep routine records for minor transfers.
The $10 de minimis exemption is denied for user wallets recording more than 5,000 transfers within a single year. This transaction volume cap preserves the original intent of the relief, which is tailored specifically for the convenience of ordinary retail users rather than active traders.
Closing the Wash Sale Loophole
On the other hand, the retail-friendly bill also extends wash sale rules to digital asset instruments. This move closes the loophole crypto investors have long utilized to lower their year-end tax bills.
Applying the expanded wash sale rule bars crypto investors from claiming portfolio losses by selling a coin and repurchasing the exact same asset within a 30-day window.
The 114-page legislative package outlines various tax profit-and-loss calculation obligations in a single document. Additional clauses cover reporting requirements for wallet-to-wallet transfers, mandatory taxes on mining operations, liability calculations for staking activities, and binding requirements for crypto brokers.
Joint Hearing with Strategic Bitcoin Reserve
The committee scheduled a markup hearing - the stage where specific statutory details are debated and finalized - for Wednesday, September 16, at 10:00 a.m. Eastern Time (ET).
The committee-level markup session for the crypto tax package will run alongside a markup session on the Strategic Bitcoin Reserve proposal.
Reported by crypto.news.
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.
