Why US House Lawmakers Are Raising Concerns About
Published 6/10/2026, 3:15:53 PM
The House Ways and Means Committee held a legislative hearing on June 9, 2026, to examine seven crypto tax bill drafts, revealing significant bipartisan concerns about the proposals. The effort to push several tax bills is meant to be bipartisan, but the parties may not be comfortable with all details of the seven bills weighed by the panel [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns].
Key Concerns Raised
1. Mining and Staking Deferral Abuse
The most significant concern centers on provisions that would allow deferral of taxation for mining and staking rewards. Mike Kaercher, deputy director of the Tax Law Center at NYU Law, testified that the bills "may be possible for taxpayers to permanently escape tax by earning rewards through certain business structures." He argued the provision "violates parity with traditional finance and the principle that income is taxed on receipt" [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns].
2. Wash Sale Rules Applicability
Coin Center Communications Director Neeraj Agrawal called extending wash sale rules to crypto "unworkable," stating that applying them would "make everyday crypto use, DeFi, and multi-wallet tracking nearly unworkable" [Source: https://www.theblock.co/post/404146/third-leg-stool-house-lawmakers-to-debate-crypto-tax-bills-questions-still-loom]. The American Bankers Association criticized the bills for giving cryptocurrencies a "significant advantage" over other assets, citing treatment of staking, mining, and yields [Source: https://www.theblock.co/post/404146/third-leg-stool-house-lawmakers-to-debate-crypto-tax-bills-questions-still-loom].
3. De Minimis Exemption Gaming
The de minimis exemption (proposed $200-$300 threshold with annual caps) has drawn concerns about potential abuse. A Treasury Department study is required before implementing such exemptions, reflecting lawmakers' hesitation [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns].
4. Compliance and Implementation Burdens
EY Americas Crypto and Digital Asset Tax Leader Tom Shea noted that brokers would need "at least 18 months" to build new cost basis and wash sale reporting into systems that currently treat digital assets as property [Source: https://tax.thomsonreuters.com/news/crypto-tax-bill-can-move-without-market-structure-law-ey-expert-says/]. The IRS is already overwhelmed with a rapidly increasing influx of crypto filings while cutting significant staff under the Trump administration [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns].
Industry Impacts
| Impact Area | Details |
|---|---|
| 60+ million Americans own or use digital assets, yet much of the tax code treats this technology as though it were a niche experiment [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns] | |
| Reporting burden | Current rules require separate reporting for every digital asset transaction, no matter how small |
| Double taxation | Mining and staking proceeds are taxed upon receipt and again when sold |
| Consumer behavior shift | Some users could migrate from regulated, centralized organizations "more into the decentralized space" due to heavy compliance obligations |
Legislative Status
The seven bills unveiled include:
- H.R. 9178 - Less Tax Paperwork for Digital Asset Owners Act (excludes network fees, stablecoin transactions)
- H.R. 9175 - Digital Asset Tax Fairness Act (mining/staking deferral)
- H.R. 9173 - Charitable Deductions for Digital Asset Donations Act
- H.R. 9172 - Applying Existing Tax Anti-Abuse Rules to Digital Assets Act (wash sale rules)
- H.R. 9174 - Digital Assets Voluntary Disclosure Program Act
Democratic Rep. Steven Horsford (D-NV) filed amendments requiring a five-year time limit on staking deferrals and changes to charitable giving provisions, stating he won't support the tax bills until his Republican counterparts make changes [Source: https://www.theblock.co/post/404146/third-leg-stool-house-lawmakers-to-debate-crypto-tax-bills-questions-still-loom].
Timeline Uncertainty
It's unclear whether there will be a viable window for major crypto tax legislation before the current session of Congress ends at the close of 2026. Midterm elections are in November, and the agenda is already crowded with remaining work on the crypto Clarity Act. As Coinbase's vice president of tax Lawrence Zlatkin stated: "The result has been confusion for taxpayers, compliance challenges for businesses and unnecessary burdens for the IRS" [Source: https://www.coindesk.com/policy/2026/06/09/crypto-tax-bills-a-work-in-progress-as-u-s-house-lawmakers-pose-concerns].
Conclusion: US House lawmakers are raising concerns about crypto tax bills primarily due to fears of tax deferral abuse through mining/staking provisions, the unworkability of extending wash sale rules to crypto, potential gaming of de minimis exemptions, and insufficient implementation timelines for brokers—all set against a backdrop of bipartisan skepticism and a narrowing legislative window before the 2026 midterm elections.