U.S. lawmakers have reopened debate on digital asset taxation through seven separate crypto tax proposals while Senate negotiators continue work on the CLARITY Act ahead of a possible floor vote before August.
Summary
- House lawmakers review seven standalone crypto tax proposals covering staking, mining, lending, and stablecoins.
- Senate negotiators continue merging CLARITY Act provisions ahead of a potential floor vote before August.
- Illinois faces industry criticism over a proposed 0.2% tax on certain digital asset transactions.
According to the House Ways and Means Committee, lawmakers are set to hear testimony Tuesday from representatives of Fidelity, Coinbase, Coin Center and New York University as Congress examines a package of tax measures covering key areas of the crypto industry.
The hearing arrives during a busy legislative week in Washington. House leaders are also trying to secure enough support for a $70 billion immigration funding package that cleared the Senate by a 52-47 vote last week and could reach the House floor as early as Tuesday.
The legislation would fund Immigration and Customs Enforcement and Customs and Border Protection through the remainder of President Donald Trump’s term.
Congress separates crypto tax proposals into targeted bills
Rather than advancing a single comprehensive tax package, lawmakers have divided provisions from the Digital Asset PARITY Act into seven standalone discussion drafts.
The proposals address taxation of stablecoin transactions, crypto mining and staking rewards, digital asset lending, wash sale rules, charitable donations involving crypto, and taxpayer disclosure requirements.
Several lawmakers have previously introduced related legislation, including Senator Cynthia Lummis and Representatives Max Miller and Steven Horsford.
Support for the effort has come from a number of industry advocacy organizations. The Digital Chamber, the Blockchain Association and the Crypto Council for Innovation welcomed the committee’s decision to move forward with the proposals.
The Digital Sovereignty Alliance described the initiative as one of the most significant developments in U.S. crypto tax policy to date:
“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.”
Not everyone in the industry is fully aligned behind the package. Ahead of the hearing, some market participants have raised concerns about specific provisions under discussion, although details of those objections have not been publicly outlined.
At the state level, tax debates are also expanding. Illinois lawmakers are considering a $56 billion budget proposal that would apply a 0.2% tax to certain digital asset transactions.
Speaking to Crypto In America, Illinois Blockchain Association Executive Director Olta Andoni argued that the proposed 0.2% tax could make Illinois less attractive for crypto businesses, warning that the measure may encourage companies and investment to leave the state.
Separate calls for tax reform have also emerged from industry figures such as Strive CEO Matthew Cole, who has advocated eliminating capital gains taxes on Bitcoin transactions.
Senate works to finalize CLARITY Act framework
While House lawmakers focus on tax legislation, Senate committees continue negotiations on the CLARITY Act, one of the most closely watched crypto market structure bills in Congress.
Current discussions involve combining separate versions of the legislation developed by the Senate Banking Committee and the Senate Agriculture Committee. Lawmakers are also reviewing ethics provisions and potential amendments connected to the GENIUS Act.
Providing an update on the process, Senator Cynthia Lummis said lawmakers are still working through several components before the legislation can advance.
“We have to wrap the Banking Committee bill with the Ag Committee’s bill, with the ethics provisions, with some changes to the Genius Act.”
Lummis added that she expects the CLARITY Act to reach the Senate floor before lawmakers leave Washington for the August recess, potentially setting up another major crypto policy vote later this year.
