House Republicans Unveil US Crypto Tax Package Even as Time Runs Out

Less than five months before midterm elections and August recess approaching, followed by a fall of campaigning, GOP house members circulated a flurry of bills ahead of a Ways and Means Committee hearing on digital asset taxation, marking one of the most comprehensive efforts by the tax-writing committee to address cryptocurrency taxation.

Given that the measures did not attract Democratic co-sponsors, the bills' long-term prospects may be influenced by future shifts in control of Congress. If the bills fail to advance this session, they could face a more uncertain path should control of the House change after the November elections.

Confidence that Congress will pass the crypto industry's top legislative priority is dropping. The CLARITY Act, which would establish a federal framework for digital asset markets, was introduced in July 2025. That measure passed through the House and is now awaiting a full vote of the Senate after a lengthy journey through committees. On 5 Jun, Galaxy Research lowered its estimate of the act's chances of becoming law to 60% from 75%, citing the tightening Senate calendar. Wintermute's head of policy and advocacy, Ron Hammond, said he placed the odds of passage at roughly 45%. 

In the package of bills introduced on 9 Jun, among the most significant proposals is the Tax Clarity for Mining and Staking Act, which would allow taxpayers to elect to defer taxation on newly minted digital assets received through mining and staking – the processes through which participants help secure blockchain networks and earn newly minted tokens – until the assets are sold. 

Under current tax treatment, staking and mining rewards are generally recognised as ordinary income when received. The proposed legislation would instead permit eligible taxpayers to postpone recognising that income until disposition, a change long sought by parts of the crypto industry. 

The proposal arrives as institutional interest in staking continues to grow. Asset managers, staking providers and public companies have increasingly embraced Ether-focused investment strategies that generate yield through staking rewards. 

Crypto tax burden 

The package also includes separate measures targeting everyday crypto use. One bill would exempt regulated US dollar stablecoin transactions from capital gains treatment, while another would create a narrow exemption for network transaction fees under $10, capped at 5,000 transactions per taxpayer per year. 

Another measure, the Providing Analogous Rules for Digital Assets Act, would extend tax treatments available from traditional financial instruments to digital assets. The proposal would allow crypto assets to qualify for existing safe harbours covering securities lending and certain foreign investment activity. 

Closing loopholes 

Not all the proposals provide relief to digital asset users. 

The Applying Existing Tax Anti-Abuse Rules to Digital Assets Act would extend existing anti-abuse tax rules to digital assets, preventing investors from selling crypto to claim a tax loss and then immediately repurchasing the same or a similar asset. 

Lawmakers also circulated a discussion draft of the End Digital Assets Tax Shelters Act, which targets a strategy used by some crypto investors who relocate to Puerto Rico to reduce or eliminate taxes on digital asset gains. The proposal would clarify that certain cryptocurrency income remains subject to US taxation and close what lawmakers describe as a loophole in existing rules. 

Another bill seeks to establish a voluntary disclosure programme allowing taxpayers who previously failed to comply with digital asset tax obligations to correct filings and potentially receive reduced penalties. 

The package also includes legislation that would simplify charitable donations of digital assets. 

Broader tax push 

Tuesday's hearing reflects growing congressional interest in establishing a dedicated tax framework for digital assets. The tax debate is unfolding alongside broader congressional efforts to establish federal rules for digital asset markets – including the Digital Asset PARITY Act, a bipartisan measure introduced in May that covers overlapping ground with several of the bills before the committee – signalling a broader shift in Washington from questions of whether crypto should be regulated to how it should be integrated into the US tax system.