U.S. House Panel to Take Up H.R. 10357, a $500M Crypto Tax Rewrite Offering Stablecoin and Small-Fee Relief

House Republicans are moving ahead with a sweeping rewrite of digital-asset tax rules that would ease friction for everyday crypto use while tightening trading provisions that lawmakers say should resemble the securities tax regime. The House Ways and Means Committee is set to consider H.R. 10357, the Digital Asset Tax Certainty Act, on Sept. 16, bringing months of negotiations over how closely crypto should be taxed like traditional financial assets to a first legislative test. The Joint Committee on Taxation (JCT) estimates the bill would increase federal receipts by about $500 million on a net basis from fiscal 2027 through 2036, reflecting a mix of revenue raisers and offsets. The package covers stablecoins, transaction fees, trading losses, digital-asset lending, staking and prior tax reporting violations. Andrew Gordon, a crypto tax lawyer, called the proposal a major step for investors seeking clearer rules, saying: "This is a massive step forward for crypto investors who simply want rules on tax. We all pay taxes, the rules need to be clear." Stablecoin carve-out targets peg noise A central feature would give qualifying U.S. dollar stablecoins special treatment so small fluctuations around the $1 peg do not force users to calculate gains or losses each time tokens are spent. For eligible transactions within prescribed bands around the peg, redemption value would generally determine tax basis and proceeds. The relief would not apply to traders, brokers or dealers. It would also exclude certain users with more than 5,000 counted transactions and taxpayers whose functional currency is not the U.S. dollar. Small-fee exclusion, but no broad $10 purchase exemption The bill would also ignore gains or losses when digital assets are used to pay network or transaction fees of $10 or less, covering items such as blockchain gas fees and certain trading or liquidity charges. This provision would apply to dispositions after Dec. 31, 2027. JCT projects the small-fee relief would reduce federal receipts by $2.365 billion through 2036, making it one of the most expensive components of the package. Lawmakers did not include a general $10 de minimis exemption for purchases made with Bitcoin or other cryptocurrencies. The exclusion is limited to transaction-related fees, leaving most crypto purchases subject to the current treatment of digital assets as property. Trading rules designed to recoup revenue To offset tax relief elsewhere, the proposal would close a long-standing gap between crypto and stocks by extending wash-sale restrictions to traded digital assets other than qualifying U.S. dollar stablecoins. Under current law, investors can generally sell Bitcoin at a loss, immediately repurchase it, and still claim the loss because wash-sale rules primarily apply to stocks and securities. H.R. 10357 would curb that strategy and would also reach certain economically equivalent assets, including wrapped and tokenized versions. JCT estimates this change would raise $1.707 billion over the budget window. A separate provision would broaden access to mark-to-market accounting for digital-asset dealers and traders whose activities rise to the level of a trade or business. JCT estimates those changes would generate $2.332 billion through 2036. Together, the two trading provisions are projected to bring in more than $4 billion, helping absorb other tax reductions. Lending and staking move closer to traditional finance Beyond trading, the bill would extend tax treatment similar to securities lending to qualifying digital-asset loans, aiming to reduce uncertainty over whether temporary transfers under lending arrangements trigger taxable sales. Eligible loans would generally avoid immediate recognition of gains or losses if requirements are met, including returning equivalent assets and satisfying economic conditions. Investment trusts would receive a targeted fix: a trust that otherwise qualifies would not lose its tax status solely because its trustee stakes digital assets held by the vehicle, potentially reducing a barrier for products seeking staking rewards. For individual miners and stakers, the proposal is narrower. It treats validation income as ordinary income and sets sourcing rules, while keeping the existing timing approach that generally taxes staking rewards when a taxpayer gains control of them. The bill does not adopt an industry-backed approach that would defer tax on newly generated mining or staking rewards until those assets are sold. Voluntary disclosure for past issues Taxpayers with older reporting problems would get an additional path to compliance. The legislation would direct Treasury to create a Digital Asset Voluntary Disclosure Program allowing eligible taxpayers to correct prior filings, pay back taxes and interest, and potentially obtain relief from certain penalties. Next steps and revenue risk The committee markup will determine whether the negotiated compromises hold. Members may amend the bill before voting on whether to advance it. Even if approved, H.R. 10357 would still need a vote on the House floor, Senate consideration and presidential action. Changes to the wash-sale, fee or stablecoin provisions during markup could also shift JCT's estimated $500 million net revenue gain, forcing lawmakers to decide how much relief they are willing to provide without turning the broader package into a revenue loser. The post Congress wants to make crypto easier to use and still collect $500 million more in taxes appeared first on CryptoSlate .