TLDR
- House Ways and Means held a hearing on the digital asset tax on June 9.
- Seven draft measures to reform cryptocurrency tax in the United States were reviewed.
- H.R. 9178 targets crypto tax paperwork for routine transactions.
- HR 9175 sets out tax rules for mining and accumulating rewards.
- Democrats have raised concerns about preferential treatment of digital assets.
The House Ways and Means Committee held a hearing on June 9 to review a package of digital asset tax proposals that aim to change how cryptocurrency transactions, mining, staking, stablecoins, donations, and compliance issues are handled under the US tax code.
The hearing put cryptocurrency taxes before Congress’ main tax-writing committee, giving lawmakers a formal framework to examine seven draft measures circulated between June 5 and 8. Chairman Jason Smith said the current tax framework places heavy reporting burdens on users of digital assets while leaving gaps that can create uncertainty for taxpayers and enforcement agencies.
the Proposals This comes at a time when more than 60 million Americans own cryptocurrencies, according to the commission’s statement. Lawmakers are considering whether the tax code should be updated to make everyday use of cryptocurrencies more practical while applying existing anti-abuse rules to digital assets.
Lawmakers are reviewing seven cryptocurrency tax measures
The package includes six bills and one discussion draft, each focusing on a specific area of digital asset taxation. The proposals address micropayments, network fees, stablecoins, mining rewards, staking rewards, charitable donations, digital asset lending, market-based accounting, voluntary disclosure, and anti-abuse rules.
H.R. 9178, the Less Tax Paperwork for Digital Asset Holders Act, would reduce the burdens of reporting routine transactions. The bill would exclude profit or loss from digital assets used to pay network fees and from regulated US dollar stablecoins. This will also create elections to simplify the accounting of digital assets.
HR 9175, the Mining and Staking Tax Clarity Act, would establish rules for newly minted digital assets. This measure confirms that mining and staking rewards are ordinary income, while allowing taxpayers to elect similar treatment for self-created property. It also addresses staking rewards received by donor funds that hold digital assets.
H.R. 9173, the Charitable Deductions for Donations of Digital Assets Act, would reduce valuation requirements for certain cryptocurrency donations when reliable market prices are available. Supporters say the measure would bring digital assets closer to traditional financial assets for charitable deduction purposes.
Stablecoins, mining and staking attract attention
Stablecoins It was a key focus because existing rules can make even small transactions reportable events. Under the current tax treatment, users may need to calculate gains or losses when spending digital assets, regardless of the size of the transaction.
The Committee also reviewed H.R. 9176, an act providing similar rules for digital assets. The proposal would allow digital assets to qualify for two existing safe tax havens, including one that helps foreign people invest in U.S. markets and one that allows the lending of assets without triggering a taxable event. It will also allow some digital asset traders and dealers to use mark-to-market accounting.
H.R. 9174, the Digital Asset Voluntary Disclosure Program Act, would direct the Treasury Department to create a one-time disclosure program for taxpayers who have previously failed to comply with cryptocurrency tax rules. The program will provide reduced penalties and a path back into compliance.
H.R. 9172, the Applying Existing Anti-Abuse Tax Rules to Digital Assets Act, would expand wash sale and constructive sale rules to include digital assets. This measure aims to prevent cryptocurrencies from receiving more favorable treatment than similar financial assets.
A Democratic debate draft, titled the Ending the Digital Assets Tax Shelter Act, would address a tax issue related to Puerto Rico’s source income rules. The project seeks to prevent US residents from using digital assets to avoid taxes while excluding long-term Puerto Rican residents from the targeted base.
Democrats raise concerns about preferential treatment
Ranking member Richard Neil said some of the proposals could help taxpayers but raised questions about whether the package would give digital assets preferential treatment compared to other investments. Democrats also introduced an amendment related to mining and charitable donations.
An amendment introduced by MP Stephen Horsford would limit the deferral under mining and storage elections to five years. It would also limit charitable deductions for donations of digital assets that are not widely traded to the amount the charity receives when the asset is sold.
The hearing included testimony from Sarah Riley of Fidelity Investments and Lawrence Zlatkin of Coinbase. Their participation reflects the interest the proposals are receiving from financial institutions and cryptocurrency companies.
The committee’s work follows a bipartisan vote in March 2025 to abolish the IRS Decentralized Finance Broker The reporting rule, which critics said is difficult to enforce. Lawmakers are now testing whether similar bipartisan support can carry more detailed changes to the cryptocurrency tax.
Other jurisdictions, including the European Union, Singapore, the United Arab Emirates and the United Kingdom, have already moved forward with setting clearer rules for digital assets. Supporters of the House package argue that clearer tax rules are needed to keep digital asset activity in the United States.
The proposals remain only drafts and must go through Congress before they become law. If even part of the package goes ahead, it could represent one of Congress’s most detailed efforts to modernize U.S. tax rules for digital assets.
