Crypto Tax Bill Advances in House Committee After Clarity Act Setback

crypto tax bill — A key U.S. House committee has advanced a new cryptocurrency tax bill, moving forward with legislation that would alter how digital asset transactions are reported to the Internal Revenue Service.

The bill, which cleared the House Ways and Means Committee, proposes to exempt certain “qualifying crypto fees” from being treated as taxable gain or loss events. It would also restrict the practice of tax-loss harvesting by disallowing deductions for losses on tokens that are sold and then repurchased within a 30-day window.

This legislative action follows a recent setback for the broader Financial Innovation and Technology for the 21st Century Act, often called the FIT21 or Clarity Act, which failed to secure a vote before Congress adjourned for its August recess. The new tax provisions represent a more targeted approach to crypto regulation.

The proposed rules aim to provide clearer guidance for taxpayers and the IRS, addressing long-standing ambiguities around the tax treatment of transaction fees and wash sales in the digital asset space. The bill’s progress marks a significant step in ongoing congressional efforts to establish a regulatory framework for cryptocurrency.