The U.S. House Ways and Means Committee on Wednesday advanced legislation creating the first comprehensive federal tax framework for cryptocurrencies and other digital assets. Lawmakers approved H.R. 10357, known as the Digital Asset Tax Certainty Act, by a bipartisan vote of 38-5, sending the measure to the full House for further consideration.

The action came less than a day after the Senate failed to advance the Clarity Act, a broader market-structure bill, on a procedural cloture vote of 49-50. That setback left the industry without progress on wider regulatory clarity, while the tax panel delivered a concrete step forward on taxation.

Historic Bipartisan Framework for Digital Assets

Committee Chairman Jason Smith described the markup as a landmark achievement following more than a year of bipartisan collaboration. The legislation amends sections of the Internal Revenue Code to apply consistent rules to digital assets, aiming to reduce compliance burdens for routine transactions while aligning treatment more closely with traditional financial instruments.

The bill addresses long-standing frictions created by the current treatment of most digital assets as property. Under existing rules, even minor transfers or payments can require capital-gain or capital-loss calculations. Supporters say the new framework brings greater certainty and workability for an industry that has grown into a multi-trillion-dollar segment of the global economy.

Key Provisions of the Digital Asset Tax Certainty Act

A central feature is a de minimis exception for certain network and transaction fees of $10 or less. Qualifying payments would not trigger gain or loss recognition, easing the paperwork associated with small blockchain fees. This relief does not apply to service providers acting on behalf of others and is structured to take effect at a later date.

The measure also introduces simplified accounting procedures for widely traded digital assets and provides special tax treatment for qualifying U.S. dollar-denominated stablecoin transactions. Wash-sale and constructive-sale rules that already apply to stocks and other securities would extend to crypto, limiting the ability to sell at a loss and immediately repurchase the same asset purely for tax purposes.

Additional sections cover crypto lending, easier valuation methods for charitable donations of digital assets, and digital-asset broker reporting requirements. A voluntary disclosure program would allow eligible taxpayers to correct certain prior compliance issues related to digital assets.

Mining and staking rewards are characterized as ordinary income. However, the legislation leaves open the precise timing of income recognition—when a holder must report rewards that have not yet been sold or converted into dollars. Joint Committee on Taxation staff noted during the hearing that the bill does not resolve this timing question.

Revenue estimates project the overall package would raise approximately $500 million for the federal government over a ten-year window. Costly relief provisions, including the $10 fee threshold estimated at roughly $2.365 billion, would be more than offset by tighter trading rules and other measures.

Amendments Rejected and Remaining Questions

Three amendments offered by Representative Lloyd Doggett were defeated. Those proposals sought to restrict senior officials from certain crypto benefits, restore expanded reporting for decentralized platforms, and mandate a study of crypto mining’s energy impact.

Several Democrats who ultimately supported the bill acknowledged that gaps remain. Representative Steven Horsford noted that unanswered questions exist and that Congress could revisit the measure later, describing the current text as providing basic guardrails that can be refined over time.

Path Forward Amid Tight Calendar

The legislation now moves to the full House. With lawmakers scheduled to leave Washington and not return until after the November midterm elections, the window for floor action this year is limited. Even so, committee passage establishes formal momentum for digital-asset tax reform and keeps the issue on the congressional agenda.

The vote underscores continued bipartisan interest in modernizing tax rules for crypto even as broader regulatory efforts face obstacles in the other chamber. The Digital Asset Tax Certainty Act represents the most detailed statutory attempt yet to bring digital assets under clearer federal tax treatment while producing a modest net positive for federal receipts.