House Ways and Means Committee Reviews Digital Asset Tax Bills as Crypto Rules Face Scrutiny

TLDR

• House Ways and Means held a digital asset tax hearing on June 9.
• Seven draft measures were reviewed for U.S. crypto tax reform.
• H.R. 9178 targets crypto tax paperwork for routine transactions.
• H.R. 9175 sets tax rules for mining and staking rewards.
• Democrats raised concerns about preferential treatment for digital assets.

The House Ways and Means Committee held a hearing on June 9 to review a package of digital asset tax proposals aimed at changing how cryptocurrency transactions, mining, staking, stablecoins, donations, and compliance issues are treated under U.S. tax law.

The hearing placed crypto taxation before Congress’s main tax-writing committee, giving lawmakers a formal setting to examine seven draft measures circulated between June 5 and June 8. Chairman Jason Smith said the current tax framework places heavy reporting burdens on digital asset users while leaving gaps that can create uncertainty for taxpayers and enforcement agencies.

The proposals come as more than 60 million Americans own cryptocurrency, according to the committee’s statement. Lawmakers are considering whether the tax code should be updated to make everyday crypto use more practical while applying existing anti-abuse rules to digital assets.

Lawmakers Review Seven Crypto Tax Measures

The package includes six bills and one discussion draft, each focused on a specific area of digital asset taxation. The proposals address small payments, network fees, stablecoins, mining rewards, staking rewards, charitable donations, digital asset lending, mark-to-market accounting, voluntary disclosure, and anti-abuse rules.

H.R. 9178, the Less Tax Paperwork for Digital Asset Owners Act, would reduce reporting burdens for routine transactions. The bill would exclude gain or loss from digital assets used to pay network fees and from regulated U.S. dollar stablecoins. It would also create an election for simplified digital asset accounting.

H.R. 9175, the Tax Clarity for Mining and Staking Act, would establish rules for newly minted digital assets. The measure confirms that mining and staking rewards are ordinary income, while allowing taxpayers to elect treatment similar to self-created property. It also addresses staking rewards received by grantor trusts that hold digital assets.

H.R. 9173, the Charitable Deductions for Digital Asset Donations Act, would reduce appraisal requirements for certain crypto donations when reliable market prices are available. Supporters say the measure would place digital assets closer to traditional financial assets for charitable deduction purposes.

Stablecoins, Mining and Staking Draw Attention

Stablecoins were a major focus because existing rules can make even small transactions reportable events. Under current tax treatment, users may need to calculate gains or losses whenever digital assets are spent, regardless of transaction size.

The committee also reviewed H.R. 9176, the Providing Analogous Rules for Digital Assets Act. The proposal would allow digital assets to qualify for two existing tax safe harbors, including one that helps foreign persons invest in U.S. markets and another that allows lending of assets without triggering a taxable event. It would also allow certain digital asset dealers and traders to use mark-to-market accounting.

H.R. 9174, the Digital Assets Voluntary Disclosure Program Act, would direct the Treasury Department to create a one-time disclosure program for taxpayers who previously failed to comply with crypto tax rules. The program would offer reduced penalties and a path back into compliance.

H.R. 9172, the Applying Existing Tax Anti-Abuse Rules to Digital Assets Act, would extend wash sale and constructive sale rules to digital assets. The measure is intended to prevent crypto from receiving more favorable treatment than comparable financial assets.

A Democratic discussion draft, titled the End Digital Assets Tax Shelter Act, would address a tax issue involving Puerto Rican source income rules. The draft seeks to prevent U.S. residents from using digital assets to avoid tax while excluding long-term Puerto Rican residents from the targeted rule.

Democrats Raise Preferential Treatment Concerns

Ranking member Richard Neal said some proposals could help taxpayers but raised questions about whether the package would give digital assets preferential treatment compared with other investments. Democrats also introduced an amendment tied to mining, staking, and charitable donations.

The amendment from Rep. Steven Horsford would limit deferral under the mining and staking election to five years. It would also limit charitable deductions for donations of digital assets that are not widely traded to the amount a charity receives when selling the asset.

The hearing included testimony from Sarah Reilly of Fidelity Investments and Lawrence Zlatkin of Coinbase. Their participation reflected the attention the proposals are receiving from financial institutions and crypto companies.

The committee’s work follows a March 2025 bipartisan vote to repeal the IRS DeFi broker reporting rule, which critics said was difficult to apply. Lawmakers are now testing whether similar bipartisan support can carry more detailed crypto tax changes.

Other jurisdictions, including the European Union, Singapore, the United Arab Emirates, and the United Kingdom, have already moved ahead with clearer digital asset rules. Supporters of the House package argue that clearer tax rules are needed to keep digital asset activity in the United States.

The proposals remain drafts and must advance through Congress before becoming law. If even part of the package moves forward, it could mark one of the most detailed congressional efforts to update U.S. tax rules for digital assets.