Key Highlights
- U.S. House lawmakers are moving forward with crypto tax reform hearings led by the Ways and Means Committee.
- Lawmakers are pushing seven draft crypto tax bills to split and rewrite how digital assets are taxed.
- The CLARITY Act remains under discussion in the Senate as lawmakers continue negotiations.
U.S. lawmakers are moving ahead with a renewed effort to reform crypto tax rules while discussions on digital asset regulation continue in the Senate.
According to a report from Crypto In America, the House is turning its attention to tax reform this week as negotiations over the CLARITY Act remain active. The effort is being led by the House Ways and Means Committee, which is set to hold a hearing on Tuesday afternoon in Washington.
Industry representatives from Coinbase, Fidelity, and Coin Center are expected at the hearing, including researchers from New York University.
Seven drafts aim to rewrite crypto tax rules
At the center of this push are seven new draft proposals. These drafts are trying to change how digital assets are taxed in the United States. They are based on an earlier bill called the Digital Asset PARITY Act, which was introduced in December by lawmakers Max Miller and Steven Horsford, along with ideas from Senator Cynthia Lummis.
Instead of passing one big law, lawmakers now want to split the rules into smaller parts. Each part focuses on something different, like staking, mining, crypto lending, stablecoins, wash sales, charity donations, and tax reporting. As described in the reporting, the aim is to fix crypto taxation in smaller, clearer sections rather than one large package.
“Breaking the PARITY Act into seven standalone drafts on staking, mining, lending, and wash sales gives lawmakers a clearer path to get the details right rather than rushing an omnibus,” one group supporting this change explained.
Support from industry groups
Several crypto firms have expressed support for the proposals. Groups like The Digital Chamber, The Blockchain Association, and the Crypto Council for Innovation say this is an important step for the future of crypto rules in the U.S.
Another group, the Digital Sovereignty Alliance, called it one of the most important moments in U.S. crypto tax policy. They believe it can shape how digital assets are treated for many years.
Concerns remain among some industry participants
Still, not everyone agrees. According to the report, some people in the industry have quietly raised concerns about parts of the draft laws. They have not spoken publicly yet, but there are worries about how some rules might affect crypto users and companies.
At the same time, a separate tax debate is happening in Illinois. The state is planning a big $56 billion budget that includes a 0.2% tax on some crypto transactions. Industry groups say this could scare away crypto businesses and investors.
Olta Andoni, executive director of the Illinois Blockchain Association, warned, “I think the legislature, by adding this 20 basis point tax…is truly telling you to pack your bags and move.”
CLARITY Act discussions continue in the Senate
While all this is happening at the state level, the Senate is still working on the CLARITY Act. Lawmakers and the White House are trying to fix disagreements about ethics rules, decentralized finance (DeFi), and how different committee versions of the bill should be combined.
Senator Cynthia Lummis said the bill might not be ready before the July 4 break and could move after July 13 instead. Meanwhile, more than 200 crypto organizations have signed a letter urging the Senate to advance the CLARITY Act as soon as possible.
Also Read: Patrick Witt Signals ‘Big Week’ for CLARITY Act as 200+ Firms Back Bill
