Crypto Tax Bill Targeted for Passage by Next August, House Tax Writer Says

Talks over how the United States should tax digital assets are moving into a new phase, as Rep. Max Miller, a member of the House Ways and Means Committee, told attendees at the Blockchain Association’s policy summit on Tuesday that he believes the bill can move before the August 2026 recess.

He said the draft has already been circulated among several committee members and that he hopes to announce a lead Democratic co-sponsor soon.

Miller’s timeline marks the most concrete sign yet that Congress is preparing to revisit an issue that has lingered for nearly a decade, dating back to the IRS’s 2014 declaration that cryptocurrencies are taxed as property.

The decision created a system where every sale, swap, or payment counts as a taxable event.

Congress Moves Toward Long-Awaited Update to Crypto Tax Code

Miller and his Democratic counterpart, Rep. Steven Horsford of Nevada, say they are working on language to simplify reporting and give taxpayers clearer rules.

Miller said the 43-day government shutdown earlier in the fall wiped out nearly two months of legislative time, making it impossible to push the proposal before year-end.

He added that the Ways and Means and Senate Finance committees, which held hearings in July and October, will use the first half of 2026 to firm up the framework.

A Republican on the Finance Committee, Sen. Steve Daines, echoed the timeline, noting that a draft should be ready by next August.

He also warned that ongoing uncertainty in the tax code is slowing down U.S. competitiveness, as digital-asset firms are hesitant to expand without statutory clarity.

Push for Small-Transaction Crypto Tax Relief Intensifies

Lawmakers are debating whether crypto should remain fully classified as property or if small everyday transactions could be treated more like currency.

Industry groups have long advocated for a de minimis rule, which would let people use crypto for small purchases without calculating capital gains.

A bill introduced earlier this year by Sen. Cynthia Lummis proposed a $300 exemption with a $5,000 annual cap.

Other technical issues under review include how exchanges should report cost basis, how foreign platforms should share data with the IRS, and whether staking rewards should be taxed when received or when sold.

The IRS currently treats staking rewards as ordinary income upon receipt, but the industry wants taxation deferred until disposition.

Stablecoin payments, business receipts over $10,000, and new international reporting standards under the Crypto-Asset Reporting Framework (CARF) are also part of the negotiations.

IRS Ramps Up Crypto Scrutiny as New Rules Near

Between May and June, crypto tax platforms and lawyers reported a sharp rise in IRS warning letters sent to U.S. investors.

The surge resembles earlier crackdowns in 2020 and 2021, when the agency secured transaction records from major exchanges.

With new third-party reporting requirements taking effect on January 1, 2026, centralized exchanges will issue 1099-DA forms for the first time, giving the government the clearest view yet of trading activity.

Congress is also juggling broader crypto policy efforts. Negotiations over a separate market-structure bill have slowed in recent weeks, with Sen. Bernie Moreno describing talks as “frustrating” and saying he will not support a weak compromise.

Lawmakers are still debating how to divide oversight between the SEC and CFTC, how to define non-security tokens, and how to regulate decentralized finance.

Several senators have warned that if progress stalls into February, the election season could freeze the agenda.

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