WASHINGTON, D.C. – Americans who own, trade, and use cryptocurrencies and other digital assets will have greater tax certainty and fewer tax compliance burdens under bipartisan legislation approved by the Ways and Means Committee. The Digital Asset Tax Certainty Act (H.R. 10357) modernizes the tax code for the digital asset economy by establishing clear rules of the road, streamlining reporting requirements, clarifying the tax treatment of mining and staking, and creating parity with traditional financial assets. It also provides Americans who own or use digital assets a pathway to compliance with tax laws and reporting requirements. The legislation builds on a July 2025 hearing of the Ways and Means Oversight Subcommittee focused on ensuring America’s digital asset policy is built for the 21st century, as well as a June 2026 full committee legislative hearing reviewing various proposals related to digital asset taxation.

Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement on the Committee’s approval of the Digital Asset Tax Certainty Act:

“The Digital Asset Tax Certainty Act is the product of bipartisan discussions and collaboration among members of the Ways and Means Committee to address the uncertainty and burdensome compliance challenges that threaten to undermine the rapidly growing and increasingly popular $2 trillion digital asset economy. By providing American consumers and investors with more certainty surrounding the tax treatment of digital assets, establishing parity with traditional financial assets, and updating tax rules to keep pace with this innovative technology, we will ensure the United States is the crypto capital of the world. This legislation would be the first-ever federal law to address the substantive tax treatment of cryptocurrencies and other digital assets – affecting the one in four Americans that currently hold some form of cryptocurrency, more than 67 million people. This is a historic step that has tremendous economic and innovative potential for our nation. I want to commend members of the Committee, on both sides of the aisle, for working together to chart a clear course forward for America’s digital asset economy.”

Digital Asset Tax Certainty Act (H.R. 10357)

• Removes tax barriers to the use of digital assets as a medium of exchange.
  • Current law requires separate reporting for every digital asset transaction, no matter how small or routine, making administration of the tax code inefficient for the IRS and burdensome for taxpayers.
  • In 2025 alone, the IRS received hundreds of millions of 1099-DA forms – many of which were for transactions less than $10.
• Provides parity between digital assets and comparable traditional financial assets:
  • Makes digital assets eligible for two existing tax code safe harbors.
  • Allows digital asset dealers and traders to use mark-to-market accounting.
  • Makes charitable donations of many common digital assets eligible for the same streamlined tax rules as publicly traded securities.
• Applies existing tax anti-abuse rules to digital assets – including the “wash sale” and “constructive sale” rules along with other anti-abuse rules such as those pertaining to financial derivatives, U.S. territories, and foreign corporations.
• Clarifies the tax treatment of mining and staking – the core processes that validate transactions on the blockchain and make the ecosystem work.
• Directs the Treasury Department to establish a voluntary disclosure program specifically focusing on digital assets, providing reduced penalties and a clean slate, to mitigate uncertainty, high compliance costs, and the currently large volume of unnecessary tax forms.

Included as part of the Digital Asset Tax Certainty Act is a change to current tax law to restore the ability of taxpayers to deduct financial losses incurred due to gambling, preventing taxpayers from being taxed on phantom income.

Read a fact sheet on the bill here.

The bill passed the Committee 38-5.