U.S. Crypto Tax Bill Aims for Passage by August 2026
A new bill aimed at clarifying the tax treatment of cryptocurrencies in the U.S. is expected to be passed by August 2026. This legislation seeks to address long‑standing uncertainties in crypto taxation, including exemptions for small transactions and reporting requirements for exchanges.
Legislative Overview
The proposed legislation, discussed by Rep. Max Miller and Rep. Steven Horsford, aims to simplify the tax process for crypto users and provide clearer rules for reporting. The bill is expected to be drafted and debated throughout 2026, with a goal to pass it by August of that year.
Key Sponsors
Rep. Max Miller, a member of the House Ways and Means Committee, stated that the bill has already been circulated among committee members and that he hopes to announce a lead Democratic co‑sponsor soon.
Current Tax Treatment Challenges
Cryptocurrencies are currently treated as property, which has created complexities and uncertainties for investors and businesses alike. The new bill seeks to resolve these issues by introducing:
- Exemptions for small transactions
- Clear reporting requirements for exchanges
- Guidance on the taxation of staking rewards
Bill Provisions
The legislation aims to provide much‑needed clarity for crypto investors and businesses by:
- Exempting everyday small crypto transactions from taxable events.
- Standardizing exchange reporting obligations.
- Defining tax treatment for staking rewards and other on‑chain earnings.
Broader Policy Context
The bill also touches on larger crypto policy questions, such as:
- Dividing oversight between the SEC and CFTC.
- Defining non‑security tokens.
- Regulating decentralized finance (DeFi) platforms.
The upcoming election season could influence the legislative timeline, but the bill’s targeted August 2026 passage demonstrates strong congressional intent to address crypto taxation.
Conclusion
In conclusion, the proposed crypto tax bill represents a significant step toward clarifying the tax treatment of digital assets in the United States. With a target passage date of August 2026, the legislation aims to provide certainty for investors and businesses navigating the rapidly evolving crypto industry.
