Crypto Tax Bills Face Pushback in House Committee Hearing
A House hearing on six crypto tax bills exposed deep partisan disagreement and uncertainty about whether Congress should move quickly before the midterms. Republicans want to advance crypto legislation while they still control Congress and the White House, but Democrats suggested a slower approach and said more questions remain than answers. House Ways & Means Democrats signaled that a bipartisan deal may not come until after the election. The biggest dispute involved staking and mining rewards. One GOP bill would let taxpayers defer income recognition on those crypto rewards, but Democrats warned that would give crypto a tax advantage over stocks and bonds and could distort markets. Crypto industry witnesses pushed for broader tax relief, especially larger de minimis exemptions for crypto payments. Coinbase’s tax chief argued ordinary purchases made with Bitcoin should not require capital gains calculations. The hearing also reflected hopes that, if broader crypto market legislation stalls in the Senate, a crypto tax bill could serve as a fallback win.
