A potential overhaul of United States cryptocurrency tax law is taking shape in Congress. as of this writing, the House Ways and Means Committee has reportedly discussed holding a legislative hearing on digital asset taxation. If enacted, these proposals would fundamentally change how investors, traders, miners, and stakers report their crypto activities to the IRS.

These discussion drafts represent the most significant legislative effort to date to create a comprehensive tax framework for digital assets, moving beyond the foundational guidance of IRS Notice 2014-21. For crypto users, understanding these proposed changes is the first step in preparing for a new era of tax compliance.

A New Chapter for US Crypto Taxation?

For years, the U.S. crypto industry has operated under a patchwork of IRS notices and interpretations of existing tax law. The core principle, established by IRS Notice 2014-21, is that cryptocurrency is treated as property, not currency. This means every sale, trade, or disposition can trigger a taxable event, requiring calculation of capital gains or losses.

The new legislative proposals discussed in June 2026 aim to address the nuances of the digital asset ecosystem that don't fit neatly into the traditional property framework. The key bills under consideration include:

a proposed bill tentatively titled the Applying Existing Tax Anti-Abuse Rules to Digital Assets Act (bill number pending): Proposes to extend wash sale and constructive sale rules to crypto.
a proposed bill tentatively titled the Tax Clarity for Mining and Staking Act (bill number pending): Suggests a new, elective deferral method for income from mining and staking rewards.
a proposed bill tentatively titled the Less Tax Paperwork for Digital Asset Owners Act (bill number pending): Aims to simplify reporting for small transactions like gas fees and the use of stablecoins.

These bills, while still in the proposal stage and not yet law, signal a clear direction from lawmakers: to align digital asset taxation more closely with the rules for traditional financial instruments like stocks and securities.

The End of an Era: Applying Wash Sale Rules to Digital Assets

One of the most significant proposed changes is the application of the wash sale rule to digital assets. Currently, the wash sale rule under Internal Revenue Code (IRC) Section 1091 prevents investors from claiming a tax loss on the sale of a stock or security if they purchase a "substantially identical" one within 30 days before or after the sale.

Because the IRS classifies cryptocurrency as property, this rule does not currently apply. This has allowed crypto investors to engage in "tax-loss harvesting" by selling assets at a loss to offset gains and immediately buying them back, a strategy not available to stock traders.

The proposed H.R. 9172 would end this practice. According to the bill text available on congress.gov, it seeks to amend IRC Section 1091 to include digital assets. If this bill were to become law, selling crypto for a loss and repurchasing the same asset within the 30-day window would result in the loss being disallowed for tax purposes. Instead, the disallowed loss would be added to the cost basis of the newly acquired crypto.

This change would require investors to be far more strategic about tax-loss harvesting, necessitating careful tracking of purchase and sale dates for all crypto assets.

A Shift in Staking & Mining: From Immediate Tax to Deferral?

The current tax treatment for staking and mining rewards is a major pain point for many network participants. According to IRS Revenue Ruling 2023-14, rewards are taxable as ordinary income at the fair market value on the date the taxpayer gains "dominion and control" over the assets. This means tax is due immediately upon receipt, even if the assets are not sold.

The proposed H.R. 9175, the Tax Clarity for Mining and Staking Act, offers a potential alternative. As detailed in the bill's text, it would allow taxpayers who receive newly minted digital assets through validation activities (like mining or staking) to elect to defer the recognition of this income.

If a taxpayer makes this election:

The value of the newly received assets would not be included in their gross income for that year.
The income would be recognized only when the taxpayer sells or otherwise disposes of the assets.
The cost basis of these deferred-income assets would be zero, meaning the full proceeds of a future sale would be treated as a gain.

This proposal would align the tax event with a cash-flow event, providing significant relief to stakers and miners who currently face tax bills without having sold any assets to cover them.

De Minimis Rules and Stablecoin Clarity

Managing the tax implications of thousands of small transactions is one of the biggest compliance burdens for active crypto users. Every on-chain action, from swapping tokens on a DEX to paying a gas fee, is technically a disposition of property.

H.R. 9178, the Less Tax Paperwork for Digital Asset Owners Act, aims to reduce this burden. The bill proposes several key changes:

De Minimis Network Fee Exception

The bill introduces a provision to exclude gains from the payment of "de minimis network fees." While the draft legislation does not specify a dollar amount, it creates a framework where small gains realized when using a crypto asset to pay for transaction fees would not be taxable. This would eliminate the need to track and report tiny amounts of capital gain on every on-chain transaction, a welcome simplification.

U.S. Dollar Stablecoin Transactions

Using stablecoins can currently create a tracking nightmare, as even minor fluctuations from their $1.00 peg can result in tiny capital gains or losses on every transaction. H.R. 9178 proposes a practical solution for "qualified U.S. dollar stablecoins."

According to the bill text, if a taxpayer acquires or disposes of a qualified stablecoin for a price between 99.5% and 100.5% of its redemption value (i.e., between $0.995 and $1.005), the transaction could be treated as a non-taxable event. For acquisitions, the basis would be treated as the redemption value (e.g., $1.00). This would effectively eliminate the need to track micro-gains and losses from routine stablecoin use.

Closing Loopholes: Constructive Sale Rules

In addition to the wash sale rule, H.R. 9172 also proposes applying the "constructive sale" rules of IRC Section 1259 to digital assets. A constructive sale occurs when an investor uses complex financial transactions (like shorting-against-the-box or using derivatives) to lock in the gains on an appreciated asset without technically selling it, thus deferring the tax liability.

Currently, these rules apply to appreciated financial positions in stock, debt instruments, or partnership interests, but not to crypto. If H.R. 9172 is enacted, entering into certain offsetting positions against a held crypto asset would be treated as a sale of that asset for tax purposes, triggering an immediate capital gains tax. This would close a potential loophole available to sophisticated investors.

What the Proposed Changes Mean for Your Crypto Taxes

These legislative proposals, taken together, represent a move toward greater maturity and structure in digital asset taxation. They aim to create parity with traditional finance while also acknowledging the unique technical features of cryptocurrency.

The table below summarizes the key differences between current law and the proposed changes.

Feature	Current Law (as of June 2026)	Proposed Changes (Not Yet Law)
Wash Sales	Does Not Apply. The rule in IRC §1091 is for "stock or securities." Crypto is property.	Would Apply. H.R. 9172 proposes extending the wash sale rule to digital assets, disallowing losses on sales with repurchases within 30 days.
Staking/Mining	Taxed Immediately. Rewards are ordinary income at fair market value upon receipt (Rev. Rul. 2023-14).	Elective Deferral. H.R. 9175 proposes an option to defer income until the asset is sold, with a zero cost basis.
Gas Fees	Taxable Disposition. Using crypto to pay gas fees is a taxable event, potentially generating a capital gain or loss.	De Minimis Exception. H.R. 9178 proposes an exception for small gains on network fee payments.
Stablecoins	Taxable Disposition. Any trade involving a stablecoin is a taxable event, with gains/losses calculated on peg deviations.	Simplified Accounting. H.R. 9178 proposes treating transactions within a tight band around $1.00 as non-taxable events.
Constructive Sales	Does Not Apply. The rule in IRC §1259 does not currently cover digital assets.	Would Apply. H.R. 9172 proposes extending constructive sale rules, treating certain hedging transactions as taxable sales.

If these rules are enacted, accurate and automated record-keeping will become more critical than ever. Calculating gains and losses while navigating wash sale rules and tracking different income types (ordinary vs. capital) requires robust software. Tools like dTax are built to handle this complexity, automatically categorizing transactions and applying the correct tax logic.

Frequently Asked Questions

When would these new crypto tax rules take effect?

These are currently legislative proposals and have not been signed into law. The hearing on June 9, 2026, was an early step in the legislative process. If the bills are eventually passed by Congress and signed by the President, the final text would specify the effective dates. Typically, such changes apply to the tax year following the year of enactment.

Does the wash sale rule apply to my crypto trades right now?

No. As of June 2026, the IRS treats cryptocurrency as property, and the wash sale rule found in IRC Section 1091 applies only to "stock or securities." Therefore, the strategy of selling crypto at a loss and immediately repurchasing it to harvest tax losses is still permissible under current law. The proposal in H.R. 9172 aims to change this, but it is not yet law.

I am a crypto staker. What should I do now?

You should continue to follow the current IRS guidance. Under Revenue Ruling 2023-14, staking rewards are considered ordinary income, taxable at their fair market value at the time you gain control over them. The proposal in H.R. 9175 to allow for income deferral is not yet law. You must comply with existing rules for the current tax year.

This content is for informational purposes only and does not constitute tax, legal, or financial advice. Consult a qualified tax professional for your specific situation.

The landscape of crypto taxation is clearly evolving. Staying informed about these developments is crucial for every participant in the digital asset economy. As these complex rules are debated and potentially implemented, having a reliable system for tracking your transactions is essential. Start automating your crypto taxes with dTax.