The US House Ways and Means Committee has circulated seven discussion draft bills to address digital asset taxation ahead of a Tuesday hearing. These proposals cover stablecoins, staking, mining, and general crypto transactions. The goal is to reduce the tax paperwork burden for crypto holders and offer clearer rules for mining and staking income. One option under review is a “de minimis” exception that would exempt small transactions from reporting requirements. The hearing is chaired by Republican Jason Smith.
Crypto industry advocates have pushed for these changes for months. They want lawmakers to lower reporting obligations for mining and staking activities and to eliminate the need to report tiny purchases, like buying a coffee with Bitcoin. A separate draft, called the Digital Asset PARITY Act, was introduced back in May. It proposed a $200 reporting threshold only for stablecoin transactions, not for cryptocurrencies such as Bitcoin.
Cody Carbone, CEO of The Digital Chamber, said: “We need digital asset tax clarity or activity will never fully onshore.” But any bill will need bipartisan support in both chambers of Congress before becoming law. While the House focuses on Tuesday’s hearing, the Senate is expected to take up a budget reconciliation bill first. That could delay consideration of a broader digital asset market structure bill known as the CLARITY Act.
Potential $300 exemption for Bitcoin trades
Wyoming Senator Cynthia Lummis indicated that both the House Ways and Means Committee and the Senate Finance Committee are considering a $300 “de minimis” exemption for Bitcoin transactions. This would mean no capital gains tax on small Bitcoin trades, building on a draft bill Lummis released in July 2025. The idea is to make crypto more usable for everyday transactions without triggering a tax headache.
Illinois moves toward crypto tax
Meanwhile, at the state level, the Illinois General Assembly this week approved a $56 billion state budget that includes digital asset tax provisions. If Governor JB Pritzker signs it into law, crypto users in Illinois will pay a 0.2% tax on transactions processed through brokers. Those brokers must also register with the state. The move signals that states are not waiting for federal clarity to start taxing digital assets.
Overall, the coming weeks will be telling. Both federal and state lawmakers are wrestling with how to fit crypto into existing tax frameworks. The industry hopes for simpler rules, but the political path remains uncertain.
