Blab Crypto
U.S. Senate Finance Committee Pauses Digital Asset Tax Reform Until House Acts First
On Tuesday, the Senate Finance Committee—charged with shaping federal tax law—announced it would not move forward with new digital‑asset rules until the House of Representatives takes the lead. The decision follows a June 9, 2026 hearing by the House Ways and Means Committee, the House’s chief tax‑writing body, where lawmakers reviewed eight bills designed to simplify the tax treatment of cryptocurrencies and related activities.
The House session, held at 1100 Longworth House Office Building at 2:00 p.m. ET, was the first legislative meeting on crypto taxation in the committee in years. While the hearing did not produce a vote, it set the stage for the committee to consider markup schedules for the eight bills. Two of those bills—H.R. 9178, the “Less Tax Paperwork for Digital Asset Owners Act,” and H.R. 9175, the “Tax Clarity for Mining and Staking Act”—received particular attention. H.R. 9178 seeks to reduce the reporting burden on holders of digital assets by amending the Internal Revenue Code to streamline filing requirements for everyday transactions. H.R. 9175 addresses the ambiguity surrounding mining and staking rewards, clarifying when such income is taxable and whether it should be treated as ordinary income at receipt or at sale.
The Senate’s pause is rooted in a longer history of bipartisan deliberation. In July 2023, Senate Finance Committee Chair Mike Crapo of Idaho and Ranking Member Ron Wyden of Oregon jointly solicited stakeholder input on digital‑asset tax policy. A Joint Committee on Taxation report followed, outlining the technical challenges of applying existing tax rules to cryptocurrencies. An October 2025 Senate Finance Committee hearing focused on specific pain points—particularly the taxation of staking rewards and the reporting requirements for digital‑asset transactions—and criticized current rules for creating compliance burdens that discourage investment.
Senate draft proposals also incorporate elements from the Miller‑Horsford PARITY Act, updated in March 2026. The act proposes de‑minimis rules that would exempt small transactions below a threshold from reporting, and wash‑sale provisions that would align crypto treatment with that of stocks when investors sell at a loss and immediately repurchase.
Both parties in the Senate have acknowledged that the lack of clear U.S. tax rules places American investors and companies at a disadvantage compared to jurisdictions with more defined frameworks. The tax gap—the difference between what taxpayers owe and what they actually pay—has been cited as a motivation for reform, as the existing framework is too confusing to enforce consistently.
For crypto holders and traders, the immediate next step is to monitor the House Ways and Means Committee’s progress on the markup schedules for the eight bills. Once the House signals a unified approach, the Senate Finance Committee has indicated it is ready to advance its bipartisan proposals.
The Senate’s stance reflects a broader strategy of waiting for the House to set the legislative agenda before moving forward. This approach is consistent with the constitutional requirement that all tax bills originate in the House. The Senate’s readiness to act, coupled with the House’s current deliberations, suggests that a comprehensive update to U.S. digital‑asset tax rules could be on the horizon in the coming months.
The House session, held at 1100 Longworth House Office Building at 2:00 p.m. ET, was the first legislative meeting on crypto taxation in the committee in years. While the hearing did not produce a vote, it set the stage for the committee to consider markup schedules for the eight bills. Two of those bills—H.R. 9178, the “Less Tax Paperwork for Digital Asset Owners Act,” and H.R. 9175, the “Tax Clarity for Mining and Staking Act”—received particular attention. H.R. 9178 seeks to reduce the reporting burden on holders of digital assets by amending the Internal Revenue Code to streamline filing requirements for everyday transactions. H.R. 9175 addresses the ambiguity surrounding mining and staking rewards, clarifying when such income is taxable and whether it should be treated as ordinary income at receipt or at sale.
The Senate’s pause is rooted in a longer history of bipartisan deliberation. In July 2023, Senate Finance Committee Chair Mike Crapo of Idaho and Ranking Member Ron Wyden of Oregon jointly solicited stakeholder input on digital‑asset tax policy. A Joint Committee on Taxation report followed, outlining the technical challenges of applying existing tax rules to cryptocurrencies. An October 2025 Senate Finance Committee hearing focused on specific pain points—particularly the taxation of staking rewards and the reporting requirements for digital‑asset transactions—and criticized current rules for creating compliance burdens that discourage investment.
Senate draft proposals also incorporate elements from the Miller‑Horsford PARITY Act, updated in March 2026. The act proposes de‑minimis rules that would exempt small transactions below a threshold from reporting, and wash‑sale provisions that would align crypto treatment with that of stocks when investors sell at a loss and immediately repurchase.
Both parties in the Senate have acknowledged that the lack of clear U.S. tax rules places American investors and companies at a disadvantage compared to jurisdictions with more defined frameworks. The tax gap—the difference between what taxpayers owe and what they actually pay—has been cited as a motivation for reform, as the existing framework is too confusing to enforce consistently.
For crypto holders and traders, the immediate next step is to monitor the House Ways and Means Committee’s progress on the markup schedules for the eight bills. Once the House signals a unified approach, the Senate Finance Committee has indicated it is ready to advance its bipartisan proposals.
The Senate’s stance reflects a broader strategy of waiting for the House to set the legislative agenda before moving forward. This approach is consistent with the constitutional requirement that all tax bills originate in the House. The Senate’s readiness to act, coupled with the House’s current deliberations, suggests that a comprehensive update to U.S. digital‑asset tax rules could be on the horizon in the coming months.
