US Crypto Tax Bill Could Advance Before August 2026 Recess
Rep. Max Miller has indicated that the crypto tax bill could move forward before the August 2026 congressional recess, with a draft already circulated among committee members. The lead Democratic co-sponsor is yet to be announced.
The bill aims to update the tax treatment of cryptocurrencies, which has been governed by a 2014 IRS ruling that treats crypto as property, causing every sale, swap, or payment to be a taxable event. Rep. Steven Horsford and Rep. Miller are collaborating on language that would simplify reporting requirements and clarify the rules.
The Ways and Means Committee and Senate Finance Committee plan to use the first half of 2026 to solidify the framework, with Senator Steve Daines expecting a draft by next August. Daines noted that ongoing tax-code uncertainty is detrimental to US competitiveness.
A key point of debate is the possible introduction of a de minimis rule for small crypto purchases. Senator Cynthia Lummis has proposed a $300 exemption with a $5,000 annual cap and is also working on a Bitcoin tax exemption.
Additional issues under review include cost-basis reporting, data sharing with foreign platforms, and the taxation timing of staking rewards—whether they are taxed upon receipt or at disposition. The industry is advocating for a tax deferral until disposition.
New international reporting standards, including the Crypto-Asset Reporting Framework (CARF), as well as considerations for stablecoin payments and business receipts exceeding $10,000, are part of ongoing negotiations. Moreover, 1099-DA reporting by centralized exchanges is set to begin on January 1, 2026.
Separately, negotiations on a market-structure bill have slowed, with Senator Bernie Moreno opposing any weak compromise. Outstanding questions involve SEC versus CFTC oversight, non-security token definitions, and regulation of decentralized finance (DeFi). Progress on this front could stall until February, ahead of upcoming elections.
