Congress Reviews Crypto Tax Bill Projected to Raise $500 Million

TLDR

• The House Ways and Means Committee will review H.R. 10357, the Digital Asset Tax Certainty Act, on September 16.
• The bill is projected to raise about $500 million in federal revenue between 2027 and 2036.
• Stablecoin transactions and small network fees under $10 would get simpler tax treatment.
• Wash sale rules, which currently apply mainly to stocks, would extend to crypto trading.
• Digital asset lending and staking within investment trusts would gain clearer tax rules.

Lawmakers in Washington are reviewing a new bill that could change how crypto taxes work in the United States. The House Ways and Means Committee is set to examine H.R. 10357, known as the Digital Asset Tax Certainty Act, on September 16.

The bill has been in the works for months. It tries to balance two goals that often pull in opposite directions.

On one hand, it aims to make everyday crypto use simpler. On the other, it closes a tax gap that has favored crypto traders over stock traders for years.

According to the Joint Committee on Taxation, the bill would increase federal revenue by roughly $500 million from 2027 through 2036. That number reflects a mix of tax cuts and tax increases built into the legislation.

What Changes for Stablecoin Users

One part of the bill focuses on stablecoins pegged to the US dollar. Right now, tiny price shifts around that $1 peg can create taxable gains or losses, even for routine purchases.

The new rules would let qualifying stablecoin transactions use redemption value to calculate gains and losses. This would apply within certain price bands around the peg.

Traders, brokers, and dealers would not qualify for this treatment. People who complete more than 5,000 transactions would also be excluded.

The bill also addresses small transaction fees. Gains or losses tied to network fees of $10 or less, like blockchain gas fees, would be disregarded starting after December 31, 2027.

This fee provision comes with a cost. The JCT estimates it will reduce federal revenue by $2.365 billion through 2036.

It is worth noting the bill does not create a broad $10 tax exemption for using Bitcoin to buy goods. The relief only applies to fees tied to network or transaction costs.

Wash Sale Rules Head to Crypto

To help offset the stablecoin relief, the bill extends wash sale rules to digital assets. Right now, an investor can sell Bitcoin at a loss, buy it back right away, and still claim that loss on their taxes.

Stock traders cannot do this under existing wash sale law. The new bill would close this gap for crypto and include wrapped or tokenized versions of assets.

The JCT projects this change alone would bring in $1.707 billion over the decade-long window.

Another section expands mark-to-market accounting access for crypto dealers and traders running a qualifying business. That piece is expected to raise $2.332 billion through 2036.

Together, these two trading provisions account for more than $4 billion in new revenue. That revenue helps balance out the tax breaks elsewhere in the bill.

The bill also touches lending and staking. It would extend tax treatment already used for securities lending to qualifying crypto loans, removing uncertainty about whether lending crypto counts as a taxable sale.

Investment trusts that stake crypto held by their vehicles would keep their tax status under the bill. This matters for funds looking to earn staking rewards without losing tax benefits.

Individual miners and stakers see less change. Their validation income remains classified as ordinary income, taxed when they gain control of the rewards.

The bill also sets up a Digital Asset Voluntary Disclosure Program. This would let taxpayers correct old filings, pay what they owe, and potentially avoid some penalties.

Wednesday’s markup is the first real test for the bill. Committee members can propose amendments before any vote, and the legislation would still need to pass the House, Senate, and receive presidential approval before.

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