U.S. Rep. Rudy Yakym (R-IN) introduced legislation to streamline federal tax reporting requirements on digital assets.
His bill, the Less Tax Paperwork for Digital Asset Owners Act (H.R. 9178), would exclude gain or loss on digital assets used to pay a network fee. So, routine, small-dollar network transactions will no longer trigger a reporting event. In addition, the bill would exclude gain or loss on regulated U.S. dollar stablecoins. Transactions in dollar-backed stablecoins are treated as dollar equivalents.
Further, it would create an election for a simplified accounting method for digital assets, giving owners a more manageable way to track and report their holdings.
Together, these changes provide taxpayers with certainty, reduce burden, promote compliance, and position the United States to lead the global digital economy.
“When the paperwork is simpler, compliance goes up and innovation follows. This is common-sense tax reform,” Yakym said.
Under the current law, every digital asset transaction, no matter how small or routine, triggers separate reporting obligations.
“Digital assets are an increasingly popular option for folks engaging in common commercial transactions like paying for goods and services – including small, routine purchases,” Ways and Means Committee Chairman Rep. Jason Smith (R-MO) said. “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 said that this bill will make the tax treatment of digital assets more efficient.