US House Proposes Tax Exemption for Sub-$10 Stablecoin Payments

The US House has proposed legislation to exclude virtual asset network and transaction fees under $10 from taxable income. However, users exceeding 5,000 transactions per year will be excluded from this benefit.

According to news outlet NewsBitcoin, Jason Smith, Chair of the House Ways and Means Committee, unveiled a 114-page bill titled 'Digital Asset Tax Certainty Act' (H.R. 10357). The committee is scheduled to review the bill on Tuesday at 10 AM EST (Monday 11 PM KST).

The proposed law would exempt network and transaction fees under $10 from taxation, but users with more than 5,000 virtual asset transactions in the previous year will remain subject to existing reporting requirements.

The bill also includes strengthened 'wash sale' rules for virtual assets. Currently, taxpayers can claim losses on virtual assets and immediately repurchase the same asset without tax implications, but the proposed law would apply wash sale rules similar to those for stocks. Eligible dollar stablecoins are excluded from this provision.

Another proposal delays taxation of cryptocurrency received through mining or staking until actual sale. However, Republican members of the Ways and Means Committee are considering removing this clause or limiting the tax deferral period to five years.