Blab Crypto
House Ways and Means Committee Sets September 16 Markup on Two Crypto Tax Bills
The U.S. House Ways and Means Committee has scheduled a markup session for September 16 to advance two federal bills that would change how digital asset income is taxed. The session moves the legislation closer to a full House floor vote and focuses on two long‑standing issues in crypto taxation.
The first bill, H.R. 9175, the Tax Clarity for Mining and Staking Act, would allow miners and stakers to defer the inclusion of newly minted tokens in their gross income until the tokens are sold. Under current guidance, a miner who receives a block reward is treated as having earned ordinary income at the moment the tokens appear in their wallet, even if the tokens are never sold. The bill would shift that taxable event to the point of disposition, treating the income as ordinary income only when the asset is sold.
The second bill, H.R. 9172, the Applying Existing Tax Anti‑Abuse Rules to Digital Assets Act, would extend wash‑sale and constructive‑sale rules to actively traded digital assets. Wash‑sale rules currently prevent investors from selling a security at a loss, claiming the deduction, and then repurchasing the same security within 30 days. Crypto traders have been able to harvest tax losses on Bitcoin or Ethereum and re‑buy the same asset minutes later without penalty. Extending these rules to digital assets could generate roughly $23.5 billion in revenue over a decade, according to Treasury estimates.
The markup follows a June 9 hearing in which the committee examined several Republican‑led draft proposals for digital‑asset taxation. Witnesses included representatives from Coinbase, Fidelity, Coin Center, and NYU Law’s Tax Law Center. Industry participants consistently argued that clear tax rules are needed soon and that regulatory clarity would help the United States maintain a competitive edge in the global digital‑asset market.
Both bills are token‑agnostic, meaning they apply broadly to the digital‑asset class without naming specific cryptocurrencies. The House Committee on Ways and Means, the chief tax‑writing body of the House, has jurisdiction over all tax legislation. The committee’s chair, Representative Jason T. Smith, has overseen the markup.
Democratic members of the committee have expressed caution. Some have called for additional analysis before moving forward, arguing that the implications of these changes need more study. Whether those calls for further study will translate into procedural roadblocks or simply serve as rhetorical positioning remains to be seen.
The markup session will consider the language of both bills, potential amendments, and the timing of a full House vote. If the bills pass, they would alter the tax treatment of mining and staking rewards and bring digital‑asset trading into the same anti‑abuse framework that governs traditional securities.
The proposed changes come at a time when the Treasury Department has highlighted the potential revenue benefits of extending wash‑sale rules to digital assets. The Treasury’s estimate of $23.5 billion over ten years underscores the fiscal significance of the legislation.
Industry stakeholders have emphasized that the current lack of clear guidance creates compliance burdens and uncertainty for miners, stakers, and traders. By allowing deferral of income until sale, H.R. 9175 would reduce the risk of taxing unrealized gains. By applying wash‑sale rules, H.R. 9172 would close a loophole that has been exploited for years.
The House Ways and Means Committee’s September 16 markup is a key step in the legislative process. The outcome of the markup will determine whether the bills move forward to a full House vote and, ultimately, whether the federal tax code is amended to reflect the realities of digital‑asset production and trading.
The committee’s decision will also influence how the IRS will enforce the new rules, how exchanges will report transactions, and how miners and stakers will plan their tax strategies. The broader crypto industry will be watching closely as the legislation progresses.
In summary, the September 16 markup will address two critical tax issues: the timing of income recognition for mining and staking rewards and the application of wash‑sale rules to digital assets. The bills are token‑agnostic, potentially generate significant revenue, and reflect industry demand for clearer tax guidance. The outcome of the markup will shape the future of crypto taxation in the United States.
The first bill, H.R. 9175, the Tax Clarity for Mining and Staking Act, would allow miners and stakers to defer the inclusion of newly minted tokens in their gross income until the tokens are sold. Under current guidance, a miner who receives a block reward is treated as having earned ordinary income at the moment the tokens appear in their wallet, even if the tokens are never sold. The bill would shift that taxable event to the point of disposition, treating the income as ordinary income only when the asset is sold.
The second bill, H.R. 9172, the Applying Existing Tax Anti‑Abuse Rules to Digital Assets Act, would extend wash‑sale and constructive‑sale rules to actively traded digital assets. Wash‑sale rules currently prevent investors from selling a security at a loss, claiming the deduction, and then repurchasing the same security within 30 days. Crypto traders have been able to harvest tax losses on Bitcoin or Ethereum and re‑buy the same asset minutes later without penalty. Extending these rules to digital assets could generate roughly $23.5 billion in revenue over a decade, according to Treasury estimates.
The markup follows a June 9 hearing in which the committee examined several Republican‑led draft proposals for digital‑asset taxation. Witnesses included representatives from Coinbase, Fidelity, Coin Center, and NYU Law’s Tax Law Center. Industry participants consistently argued that clear tax rules are needed soon and that regulatory clarity would help the United States maintain a competitive edge in the global digital‑asset market.
Both bills are token‑agnostic, meaning they apply broadly to the digital‑asset class without naming specific cryptocurrencies. The House Committee on Ways and Means, the chief tax‑writing body of the House, has jurisdiction over all tax legislation. The committee’s chair, Representative Jason T. Smith, has overseen the markup.
Democratic members of the committee have expressed caution. Some have called for additional analysis before moving forward, arguing that the implications of these changes need more study. Whether those calls for further study will translate into procedural roadblocks or simply serve as rhetorical positioning remains to be seen.
The markup session will consider the language of both bills, potential amendments, and the timing of a full House vote. If the bills pass, they would alter the tax treatment of mining and staking rewards and bring digital‑asset trading into the same anti‑abuse framework that governs traditional securities.
The proposed changes come at a time when the Treasury Department has highlighted the potential revenue benefits of extending wash‑sale rules to digital assets. The Treasury’s estimate of $23.5 billion over ten years underscores the fiscal significance of the legislation.
Industry stakeholders have emphasized that the current lack of clear guidance creates compliance burdens and uncertainty for miners, stakers, and traders. By allowing deferral of income until sale, H.R. 9175 would reduce the risk of taxing unrealized gains. By applying wash‑sale rules, H.R. 9172 would close a loophole that has been exploited for years.
The House Ways and Means Committee’s September 16 markup is a key step in the legislative process. The outcome of the markup will determine whether the bills move forward to a full House vote and, ultimately, whether the federal tax code is amended to reflect the realities of digital‑asset production and trading.
The committee’s decision will also influence how the IRS will enforce the new rules, how exchanges will report transactions, and how miners and stakers will plan their tax strategies. The broader crypto industry will be watching closely as the legislation progresses.
In summary, the September 16 markup will address two critical tax issues: the timing of income recognition for mining and staking rewards and the application of wash‑sale rules to digital assets. The bills are token‑agnostic, potentially generate significant revenue, and reflect industry demand for clearer tax guidance. The outcome of the markup will shape the future of crypto taxation in the United States.
