Crypto Tax Bill Targeted for Passage by Next August, House Tax Writer Says
Lawmakers are putting crypto tax regulation on the clock. A key House tax writer just set a hard deadline: get the bill passed by next August.
The Countdown Begins
Forget vague promises of 'future legislation.' This timeline throws down a gauntlet. The political machinery—committees, markups, floor votes—now has a concrete target. It signals a shift from theoretical debate to legislative action.
What's at Stake?
The bill itself aims to clarify the murky tax treatment of digital assets. Think reporting requirements for exchanges, definitions for staking rewards, and rules for decentralized finance (DeFi) transactions. The goal? To bring crypto into the existing tax framework, not create a parallel universe.
The industry has lobbied for clarity for years, arguing uncertainty stifles innovation. Now they might get their wish—along with a compliance headache Wall Street has managed to lobby into oblivion for decades.
August or Bust
Setting an August target is aggressive. It leaves a narrow window before the political landscape potentially reshuffles. The push suggests a critical mass of support has been reached, or that delaying further is no longer tenable.
For crypto natives, the era of operating in a regulatory gray area is ending. The coming months will define the rules of the game. The clock is ticking—loudly.
Congress Moves Toward Long-Awaited Update to Crypto Tax Code
Miller and his Democratic counterpart, Rep. Steven Horsford of Nevada, say they are working on language to simplify reporting and give taxpayers clearer rules.
Miller said the 43-day government shutdown earlier in the fall wiped out nearly two months of legislative time, making it impossible to push the proposal before year-end.
Trump signs bill ending 43-day shutdown. ETFs await approvals, and markets eye potential weekend momentum.#Shutdown #Bitcoinhttps://t.co/zzvrf2SqdN
He added that the Ways and Means and Senate Finance committees, which held hearings in July and October, will use the first half of 2026 to firm up the framework.
A Republican on the Finance Committee, Sen. Steve Daines, echoed the timeline, noting that a draft should be ready by next August.
He also warned that ongoing uncertainty in the tax code is slowing down U.S. competitiveness, as digital-asset firms are hesitant to expand without statutory clarity.
Push for Small-Transaction Crypto Tax Relief Intensifies
Lawmakers are debating whether crypto should remain fully classified as property or if small everyday transactions could be treated more like currency.
Industry groups have long advocated for a de minimis rule, which WOULD let people use crypto for small purchases without calculating capital gains.
A bill introduced earlier this year by Sen. Cynthia Lummis proposed a $300 exemption with a $5,000 annual cap.
@SenLummis has responded to @jack's call for a Bitcoin tax exemption for small transactions, stating she is "Working on it." #CryptoTax #Bitcoinhttps://t.co/6S4GtW7Vpf
Other technical issues under review include how exchanges should report cost basis, how foreign platforms should share data with the IRS, and whether staking rewards should be taxed when received or when sold.
The IRS currently treats staking rewards as ordinary income upon receipt, but the industry wants taxation deferred until disposition.
Stablecoin payments, business receipts over $10,000, and new international reporting standards under the Crypto-Asset Reporting Framework (CARF) are also part of the negotiations.
IRS Ramps Up Crypto Scrutiny as New Rules Near
Between May and June, crypto tax platforms and lawyers reported a sharp rise in IRS warning letters sent to U.S. investors.
The surge resembles earlier crackdowns in 2020 and 2021, when the agency secured transaction records from major exchanges.
With new third-party reporting requirements taking effect on January 1, 2026, centralized exchanges will issue 1099-DA forms for the first time, giving the government the clearest view yet of trading activity.
Congress is also juggling broader crypto policy efforts. Negotiations over a separate market-structure bill have slowed in recent weeks, with Sen. Bernie Moreno describing talks as “frustrating” and saying he will not support a weak compromise.
Sen. Moreno warns U.S. lawmakers: “No deal is better than a bad deal.” U.S. crypto legislation may be delayed
#Regulation #CLARITYActhttps://t.co/Z9QlO4yiD4
Lawmakers are still debating how to divide oversight between the SEC and CFTC, how to define non-security tokens, and how to regulate decentralized finance.
Several senators have warned that if progress stalls into February, the election season could freeze the agenda.
