US Crypto Tax Bill Exempts Sub-$10 Fees, 114 Pages Filed
A 114-page crypto tax bill from House Ways and Means Chair Jason Smith would exempt network and transaction fees under $10, with a committee markup set for Wednesday, Sept. 16. The measure matters for everyday users who pay small on-chain fees on swaps, bridges and transfers, and could reset several compliance rules.
A sweeping 114-page crypto tax bill from House Ways and Means Chair Jason Smith would exempt de minimis network and transaction fees under $10, with a committee markup scheduled for Wednesday, Sept. 16. The legislation folds in elements from bipartisan proposals and targets the practical frictions that hit users on everyday blockchain activity.
The measure addresses a broad slate of tax topics for digital assets, including de minimis transactions, gain and loss accounting, transfers, wash sale rules, mining, staking and broker requirements. It also incorporates provisions drawn from work by Rep. Steven Horsford (D-Nev.) and Rep. Max Miller (R-Ohio), signaling cross-party alignment on several technical fixes.
What changes for small crypto transactions?
The bill would eliminate taxes on de minimis network or transaction fees below $10, reducing friction for routine on-chain actions. Because every swap, bridge and transfer carries a fee, removing taxation on small charges could simplify recordkeeping and lower incidental costs that accumulate for frequent users.
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Practically, the sub-$10 exemption targets the high-frequency but low-dollar line items that complicate compliance for cryptocurrency users. By carving out minor fees, the proposal aims to separate meaningful taxable events from operational costs of using a blockchain. That distinction could benefit wallet users, DeFi participants and NFT collectors who incur numerous micro-fees, even when no gain is realized.
How broad is the bill’s scope?
The draft spans seven core areas: de minimis transactions, gain and loss accounting, transfers, wash sale rules, mining, staking and broker requirements. It consolidates ideas from two lawmakers—Rep. Steven Horsford and Rep. Max Miller—into a single framework meant to rationalize how digital asset activity is treated across the tax code.
By enumerating discrete categories, the measure signals intent to standardize treatment across common activities—from retail portfolio rebalancing and validator operations to how intermediaries report customer activity. While the small-fee exemption is the most immediate change for everyday users, the definitions and mechanics across these seven areas will determine how investors, miners, stakers and brokers adapt compliance processes once text is finalized in committee.
What does the bill mean for active traders?
The bill addresses wash sale rules and gain and loss accounting, two areas that directly affect frequent traders. Any change to wash sale treatment or reporting requirements could alter how active market participants track disposals, harvest losses and reconcile trades across venues.
Details will turn on the committee markup on Sept. 16, where text can be refined before any floor consideration. Traders should watch how dispositional events are defined, whether specific anti-abuse provisions are adopted, and how broker reporting interfaces with decentralized and centralized platforms. The outcome will shape tax planning for high-volume strategies across spot markets and derivatives that settle on-chain.
What happens at the Sept. 16 markup?
Committee members are expected to debate, amend and potentially vote to advance the 114-page bill at the Sept. 16 markup. That session is the first formal test of the draft’s small-fee exemption and its treatment of wash sales, staking, mining and broker reporting.
After markup, the measure could proceed to additional committee steps or move to the House floor, depending on outcomes and support. Stakeholders—wallet providers, exchanges, miners, stakers and investors—will be parsing any revised language for operational impacts, particularly where the $10 de minimis fee exemption intersects with reporting and recordkeeping across the seven enumerated areas.
For readers following legislative calendars, the Ways and Means Committee typically posts markup notices and documents in advance, offering the latest draft language and amendments as they become available. Interested parties can monitor the committee’s official page for scheduling and updated materials.
This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile and carry significant risk. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.
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