US House Tax Panel Set to Unveil Package of Crypto Tax Bills

A congressional push to formally establish a tax framework for digital assets is coming into focus.

Bloomberg reported that the House Ways and Means Committee, which oversees tax policy, plans to release a package of cryptocurrency tax bills as early as June 5 and hold a hearing early next week.

The crypto industry has long pushed for tax parity between digital assets and traditional financial products, along with clearer guidance for crypto-specific situations that do not fit neatly into the framework for conventional finance.

The Ways and Means Committee has made building a tax framework for digital assets a top priority. Individual lawmakers have introduced related bills before, but this would be the first time leaders of Congress's tax-writing committees have taken the lead on such legislation. The Treasury Department has also been closely involved in the process.

People familiar with the matter said the committee plans to release seven bills to address the issues. The package includes provisions on when to tax staking rewards earned for helping operate blockchain networks and tokens generated through mining.

Representative Kevin Hern, a Republican on the committee, said the panel will address the method and timing of taxes on staking and mining. It is also considering exempting certain stablecoin transactions from capital gains taxes.

The package focuses on aligning the tax treatment of digital assets with that of traditional securities. It would extend to digital assets rules governing charitable donations, as well as safe-harbor provisions that allow foreign investors to trade US securities without being taxed as domestic businesses. It also includes rules allowing assets to be transferred temporarily without triggering capital gains taxes.

The measures would also extend wash-sale restrictions to digital assets. The rule bars investors from claiming a tax loss if they sell a security at a loss and repurchase a substantially identical asset within 30 days.

It remains unclear whether the package has secured broad Democratic support. Representative Mike Thompson, the top Democrat on the House tax subcommittee, struck a cautious tone after a roundtable in May, saying lawmakers must weigh both the risks of passing the bills and the risks of not passing them.

Separately, Kenneth Kies, the Treasury Department's top tax official, said in May that the department had been working with the Commerce Department and the White House to help the House Ways and Means Committee prepare crypto tax measures. Senior Senate tax lawmakers from both parties are also preparing their own cryptocurrency tax legislation, according to people familiar with the matter.