The House Ways and Means Committee has introduced seven discussion drafts that would significantly alter how digital assets are taxed in the United States, with a particular focus on decentralized finance lending, stablecoins, staking, mining, and anti-abuse measures. The proposals, set to be examined during a June 9 congressional hearing, aim to bring clarity to areas that have long puzzled taxpayers and regulators alike.
According to a report from crypto journalist Eleanor Terrett, the package breaks down crypto tax policy into distinct topics, including DeFi lending, stablecoin payments, staking rewards, mining income, wash-sale rules, charitable donations, and a voluntary disclosure program for unresolved crypto reporting issues. Many of these subjects were previously part of broader legislative efforts, such as the bipartisan PARITY Act and Senator Cynthia Lummis’s separate bill.
One of the most consequential aspects involves DeFi lending, which has faced uncertainty over how transactions should be treated under existing tax law. The discussion drafts propose new rules that could affect how lenders and borrowers report gains and losses. Additionally, stablecoin payments may receive a de minimis exemption for small gains and losses from everyday transactions, a move that could encourage use of stablecoins for payments rather than speculation.
Anti-abuse provisions also feature prominently, with plans to extend wash-sale and constructive-sale rules to crypto, aligning digital assets more closely with traditional securities. This could limit tax-loss harvesting strategies common among crypto investors.
Mining and staking rules remain under review, with drafts addressing the timing of when rewards become taxable. Lawmakers have previously raised concerns about phantom income, where taxpayers are taxed on rewards before they are sold. A related bipartisan effort, the PARITY Act, would allow taxpayers to elect when staking and mining rewards trigger tax liability, potentially relieving some of the pressure on participants.
The Ways and Means Committee hearing on June 9 will be a critical forum for these proposals. Outside the tax debate, Congress is also advancing other digital asset legislation, including the CLARITY Act and the American Reserves Modernization Act, which seeks budget-neutral methods to increase U.S. Bitcoin reserves without direct government purchases.