Every time a digital asset transaction is made, it triggers separate tax reporting obligations under federal law, a requirement that U.S. Rep. Rudy Yakym (R-IN) wants to change under newly introduced legislation.
The congressman on June 8 sponsored the Less Tax Paperwork for Digital Asset Owners Act, H.R. 9178, to reduce the administrative burden on Americans who use digital assets by streamlining federal tax reporting requirements.
“President Trump has set a clear goal: make America the crypto capital of the world. This bill does exactly that by stripping away the unnecessary red tape that makes digital asset ownership needlessly complicated for everyday Americans,” Rep. Yakym said. “When the paperwork is simpler, compliance goes up and innovation follows. This is common-sense tax reform.”
The legislation would exclude gain or loss on digital assets used to pay a network fee, and routine, small-dollar network transactions would no longer trigger a reporting event, according to a bill summary provided by Rep. Yakym’s staff.
Additionally, the bill would exclude gain or loss on regulated U.S. dollar stablecoins. Transactions in dollar-backed stablecoins would be treated as the dollar equivalents they are.
H.R. 9178 also would create an election for a simplified accounting method for digital assets, giving owners a cleaner, more manageable way to track and report their holdings, the summary says.
“Digital assets are an increasingly popular option for folks engaging in common commercial transactions like paying for goods and services — including small, routine purchases,” said U.S. Rep. Jason Smith (R-MO), chairman of the U.S. House Ways and Means Committee, which is considering H.R. 9178.
“However, the current tax treatment of digital asset transactions is needlessly burdensome for all involved, from those engaging in everyday commerce to regulators having to comb through a mountain of paperwork related to each individual transaction,” Smith added. “The Less Tax Paperwork for Digital Asset Owners Act will streamline and make the tax treatment of digital assets more efficient by recognizing certain transactions should not need an accountant to execute.”