House Republicans moved a broad digital-asset tax package forward in mid-September, putting several crypto tax changes back on the congressional agenda before year-end. The bill, H.R. 10357, would create a limited exemption for certain crypto transaction fees of $10 or less, extend wash-sale rules to digital assets, and set clearer tax treatment for stablecoins, lending, mining, and staking if it ultimately becomes law.
The House Ways and Means Committee was scheduled to mark up the measure on September 16, and it later advanced the bill by a 38-5 vote, according to KuCoin and Tron Weekly. For now, current federal tax rules still apply. The measure would still need approval from the full House, the Senate, and the president before any of its provisions take effect.
What Changed
At the center of the proposal is a de minimis rule for certain blockchain-related fees. Under the bill described by BigGo Finance, qualified network or transaction fees paid with digital assets would be excluded from capital-gains reporting if the fee is $10 or less. The bill would not create a broad exemption for everyday crypto purchases. It is narrower than that, focusing on eligible fees rather than ordinary consumer payments.
The proposal also includes a guardrail aimed at frequent users. Taxpayers with more than 5,000 transfers in the prior year would not qualify for the fee exemption, based on the bill summary reported by BigGo Finance.
Other major provisions would:
- treat mining and staking rewards as ordinary income when received;
- use redemption value as tax basis for eligible dollar-pegged stablecoins bought at or near par;
- extend wash-sale rules to digital assets;
- avoid sale treatment for qualifying crypto loans; and
- direct Treasury to create a Digital Asset Voluntary Disclosure Program within 12 months of enactment.
The bill also would allow certain users of traded digital assets to elect an annual accounting method starting in 2028, reporting overall gains and losses once per year rather than tracking each trade separately, BigGo Finance reported.
Who Is Affected
The measure matters most for households and businesses that use digital assets regularly rather than simply buying and holding them. That includes active traders, crypto holders who pay network fees, businesses that accept dollar-backed stablecoins, taxpayers with prior-year reporting issues, and investors participating in staking or mining.
For casual users, the most visible item is the proposed $10 fee rule. Today, because the IRS generally treats digital assets as property, using crypto to pay a fee can trigger a taxable event. A narrow exemption could reduce recordkeeping for smaller blockchain transactions, though only for covered fees and only if the taxpayer stays under the transfer cap.
For traders, the wash-sale provision may be more important financially. Current wash-sale restrictions apply to stocks and securities, not digital assets. If H.R. 10357 becomes law, crypto investors could lose the ability to sell at a loss and immediately repurchase substantially identical digital assets while still claiming the deduction. Tron Weekly reported that the Joint Committee on Taxation estimated this wash-sale provision would raise about $1.71 billion from fiscal 2027 through 2036.
For businesses accepting qualifying U.S. dollar payment stablecoins, KuCoin reported that the bill would remove certain gain-and-loss calculations when those stablecoins are accepted or redeemed at face value in ordinary business operations. That could simplify bookkeeping where a token is functioning more like cash than like a speculative asset.
The After-Tax Math
The bill is still proposed legislation, so the numbers below are examples of how the draft would change tax reporting if enacted.
| Scenario | Current federal treatment | Proposed treatment under H.R. 10357 |
|---|---|---|
| $8 eligible network fee paid in crypto | Can trigger gain or loss because crypto is treated as property | No gain or loss recognition if the fee qualifies and the taxpayer is under the transfer cap |
| Sell crypto at a loss and buy it back quickly | Wash-sale rule generally does not apply to digital assets | Loss could be disallowed under new wash-sale rules |
| Buy eligible dollar stablecoin at about $1 and redeem at face value | Basis tracking may be needed using market price | Redemption value used as basis when bought at or near par |
| Receive staking rewards | Current treatment varies by circumstance | Ordinary income when received |
Example: assume an investor pays 40 qualifying blockchain fees of $6 each during the year using appreciated crypto. Under current rules, each payment may require gain-or-loss tracking. Under the bill, those 40 fees could be excluded from capital-gains calculations if the investor otherwise qualifies. That would not erase tax on other sales, trades, or ordinary purchases made with crypto, but it could reduce the number of taxable line items.
Example: a trader realizes a $25,000 loss on a digital asset and immediately buys back the same holding. Under current law, that loss may still be usable. Under the bill, the wash-sale rule could block that deduction, delaying the tax benefit.
Moves to Discuss With Your Advisor
Because the bill has not become law, there is no immediate filing change to make. Still, households with sizable digital-asset activity may want to review where the proposal could matter most if Congress revives or advances it.
- Fee tracking: Separate small network and transaction fees from ordinary purchases and sales so it is easier to identify what might qualify.
- Loss harvesting plans: Traders who rely on same-day or near-term repurchases may want to model how wash-sale limits would change year-end tax planning.
- Stablecoin workflows: Businesses using dollar-backed stablecoins may want to compare current recordkeeping with the bill’s face-value framework.
- Staking income timing: Investors with large staking positions may want to quantify the cash-tax impact of ordinary-income treatment upon receipt, especially for rewards that are not immediately liquid.
- Past compliance issues: Taxpayers with older crypto reporting gaps may want to watch the proposed voluntary disclosure program.
What to Watch Next
The immediate question is whether House leaders schedule H.R. 10357 for floor action. BigGo Finance reported that passage this year remained unlikely because of the legislative calendar, even before Senate consideration. Committee approval is only an early step.
Investors should also watch whether lawmakers alter the bill’s staking provisions. A deferral rule that industry groups supported was omitted from the version described ahead of the markup, and KuCoin reported that industry advocates continued to push for taxing newly created staking and mining rewards at disposition rather than upon receipt.
Finally, effective dates matter. Tron Weekly reported that September 14, 2026, was listed as the effective date for several provisions in the approved substitute bill, including wash sales and certain other digital-asset rules. Whether that survives the full legislative process, and in what form, remains uncertain. Until Congress acts, existing federal tax treatment of digital assets stays in place.
Sources
- First reported House Tax Panel Advances $10 Crypto Fee Exemption in Sweeping Digital Asset Bill — BigGo Finance
- U.S. House Advances Digital Asset Tax Certainty Act — KuCoin
- Crypto Tax Bill Wins 38-5 Vote as House Eyes Next Step — Tron Weekly
After TAX is an independent publication. Articles are general information, not tax, legal or investment advice. Consult a licensed professional about your situation.
