US House Committee Approves Crypto Tax Overhaul in 38-5 Vote

The US House Ways and Means Committee has voted to overhaul federal tax rules for crypto. The Digital Asset Tax Certainty Act won support from both Republicans and Democrats, just a day after the Senate failed to advance the far more high-profile Clarity Act. For holders of bitcoin, stablecoins and tokens, this means new rules of the game within the next few years.

What the committee approved in a 38-5 vote

On Wednesday the Ways and Means Committee advanced H.R. 10357, the Digital Asset Tax Certainty Act, by a vote of 38 to 5. The bill covers stablecoins, including assets like USDC, along with mining, staking, crypto lending and transaction fees. According to the committee chairman, the bill took more than a year of work to align both parties. Similar proposals have repeatedly stalled in Congress before, so a 38-5 vote counts as a rare show of bipartisan agreement on crypto. The bill now heads to the full House, where a simple majority is required.

"This wasn't built overnight. The legislation before us today brings clarity, parity and workability to digital asset taxation and helps keep the United States the crypto capital of the world, instead of pushing that innovation and the jobs that come with it offshore."

- Rep. Jason Smith, Chairman of the Ways and Means Committee, statement after the vote, September 16, 2026

How would taxes on staking and mining change?

The bill formally classifies staking and mining rewards as ordinary income at the time they are received. Before the bill, some taxpayers argued such rewards should only be taxed once the coins are sold, not upon receipt. The new law settles that debate and locks in the treatment the tax authority already applied in practice. The bill also lets investment funds stake assets, such as Ethereum, without losing their tax status simply for staking.

• Key point: staking and mining rewards are taxed as ordinary income as soon as they are received
• funds can stake coins without risking their tax status
• the final version dropped an earlier plan to defer tax until the coins are sold
• loans backed by crypto no longer count as a sale of the asset

That last point resolved a long-standing industry complaint. Previously, pledging crypto as loan collateral could be treated as a taxable event, even though the owner was simply borrowing money rather than selling coins. The bill also adds a separate disclosure program. Taxpayers who previously miscalculated tax on staking or mining rewards will be able to correct old returns without facing penalty audits.

Why does the bill exempt small transaction fees?

A separate provision removes tax accounting for small network fees. If a transaction fee is $10 or less and paid in crypto, gains or losses on it no longer need to be reported. The reason is simple: under current law crypto counts as property, so spending any coin is technically a sale with tax consequences, even for a tiny network fee.

The exemption grew out of complaints from users making small transfers. A $5 stablecoin transfer, for example, might carry a fee of just a few cents, yet the owner was still technically required to report any gain or loss on that tiny amount. Across millions of small transactions, everyday crypto use turned into bookkeeping busywork.

The break only takes effect in 2028 and applies specifically to network fees. Paying for coffee with bitcoin and forgetting about taxes still will not work. The rule does not cover ordinary small purchases.

Why are crypto investors losing a favorite tax trick?

The bill extends the wash sale rule to crypto, a rule that has applied to stocks for decades. If an investor sells an asset at a loss and buys back nearly the same asset within 30 days before or after the sale, the loss no longer counts for tax purposes.

That rule has long applied to stocks. For crypto, such as Bitcoin, it never applied, because digital assets do not technically meet the definition of a security. Traders took advantage of that gap. At year-end they would sell a coin to lock in a loss, then buy it right back to keep their position while cutting their tax bill. The new bill closes that door, and investors lose one of the few legal ways to book a loss and keep their position at the same time.

What happens next with the bill?

The committee vote came a day after the Clarity Act failed in the Senate. A procedural motion there drew only 49 votes out of the 60 needed. The SEC and CFTC have already said they will act under their existing powers rather than wait for a new market structure law.

Bipartisan support in committee does not guarantee a swift path through the full House. Parts of the crypto industry welcomed the vote as a sign Congress can still move on crypto issues after the Clarity Act setback, though the final outcome remains uncertain.

The tax bill still has a long way to go: a vote by the full House, an identical Senate version, and the president's signature. If it clears every stage, the first practical changes for stablecoin holders, stakers and miners would not arrive before 2028.