House Ways and Means Panel Advances Bitcoin (BTC) Tax Rules in 38-5 Committee Vote

67 Million US Holders in Scope

The House Ways and Means Committee voted 38-5 on September 16, 2026, to advance H.R. 10357, the Digital Asset Tax Certainty Act — the first federal legislation to define the substantive tax treatment of cryptocurrencies and other digital assets. Chairman Jason Smith, a Missouri Republican, introduced the bill on September 14, and the committee's official account announced the passage shortly after the roll call. Committee figures put the affected population at roughly 67 million Americans — about one in four — holding some form of cryptocurrency within a digital asset economy the panel sizes at $2 trillion.

announced the passagehttps://x.com/WaysandMeansGOP/status/2100262334279172453?ref_src=twsrc%5Etfw

The mechanics target everyday use. Under current law even the smallest disposal triggers a reportable gain or loss, and committee documents note that hundreds of millions of 1099-DA forms reached the Internal Revenue Service in 2025, with sub-$10 trades driving much of that trading volume. H.R. 10357 introduces a de minimis exclusion — no gain or loss is recognized when digital assets pay network or transaction fees of $10 or less — and excludes disposals of regulated dollar-backed stablecoins. The bill also adds digital assets to two existing safe harbors, grants dealers and active traders mark-to-market accounting on par with securities and commodities, treats qualifying digital asset lending as something other than a sale, and applies simplified rules to charitable donations of actively traded coins.

Not every provision favors the industry. The wash-sale rule, which disallows losses on repurchases of a substantially identical asset, extends to digital assets for the first time, alongside constructive-sale provisions reaching transactions that lock in gains — including positions written into smart contract protocols. New standards would govern the source and character of mining and staking rewards, clarify the treatment of exchange-traded products that stake, including liquid staking arrangements, trim broker reporting requirements, and direct the Treasury Department to create a voluntary disclosure program with reduced penalties for past filing deficiencies.

28-21 Vote on Forfeited BTC

The House Financial Services Committee advanced the other legislative track the same day, approving H.R. 8957, the American Reserve Modernization Act, by 28-21. Representative Nick Begich of Alaska introduced the bill in May and confirmed the committee vote in an official post, crediting work with members of Congress, subject-matter experts and the Commerce and Treasury Departments. The measure directs Bitcoin seized through final criminal and civil forfeiture into a Treasury-managed Bitcoin reserve held for at least 20 years, with a separate stockpile covering other digital assets. Representative Bryan Steil, who carried the custody language, has argued the government cannot let seized coins languish in fragmented and inconsistent custody — the bill centralizes all of it under Treasury.

confirmed the committee votehttps://x.com/RepNickBegich/status/2100331832378093657?ref_src=twsrc%5Etfw

Scale gives the reserve bill its weight. On-chain entity data puts federal Bitcoin holdings at 324,527 BTC, worth roughly $24.8 billion at the live spot price near $76,500. In our reading, the 20-year minimum holding requirement removes any near-term sell pressure from that stockpile by design. Both committee actions landed one day after the Senate failed 49-50 to invoke cloture on the CLARITY Act (H.R. 3633), the market-structure bill that would assign digital asset oversight between regulators. House Financial Services Chairman French Hill and House Agriculture Chairman Glenn Thompson said afterward that Congress still needs to set rules for the sector despite that setback — and the 28-21 roll call kept a second bill moving while the Senate stalled. Readers tracking the market in real time can follow live spot and futures prices on Bybit.

Where the Tax Code Ends

Read side by side, the two documents draw a precise line. The committee text of H.R. 10357 states exactly whom the law would bind — brokers, dealers and taxpayers, under new recognition and reporting rules — but none of it takes effect yet: this is a proposal that still needs a House floor vote, Senate passage and the President's signature, with the 119th Congress ending in January. Ways and Means now claims the tax code; custody of forfeited coins falls to ARMA; and market structure stays where the Senate left it after the 49-50 cloture failure. For venues weighing compliance costs, our Best Crypto Exchanges guide tracks how major platforms currently handle digital asset tax reporting.