White House crypto policy adviser Patrick Witt has publicly endorsed a new package of cryptocurrency tax reform proposals introduced in the U.S. House of Representatives. The legislation aims to address several long-standing concerns surrounding digital asset taxation, including staking rewards, mining income, capital gains reporting, charitable donations, and wash-sale rules.
Trump Administration Advisor Backs Crypto Tax Reform
Patrick Witt, who serves as a key crypto adviser within the White House, voiced support for the proposed legislation through a post on social media, praising lawmakers for advancing both market structure and tax clarity for the digital asset industry.
The House Ways and Means Committee introduced six separate cryptocurrency tax bills ahead of a scheduled hearing on June 9. Rather than combining all provisions into a single package, lawmakers opted to advance each proposal individually, increasing the likelihood that some measures could move forward even if others face opposition.
Six Crypto Tax Bills Introduced in Congress
The proposed legislation includes six separate measures designed to modernize digital asset taxation in the United States:
- Less Tax Paperwork for Digital Asset Owners Act (H.R. 9178)
- Charitable Deductions for Digital Asset Donations Act (H.R. 9173)
- Tax Clarity for Mining and Staking Act (H.R. 9175)
- Providing Analogous Rules for Digital Assets Act (H.R. 9176)
- Digital Assets Voluntary Disclosure Program Act (H.R. 9174)
- Applying Existing Tax Anti-Abuse Rules to Digital Assets Act (H.R. 9172)
Together, these proposals seek to create a more transparent and practical tax framework for cryptocurrency users, investors, miners, and businesses.
New Rules Could Clarify Staking and Mining Taxes
One of the most closely watched measures is the Tax Clarity for Mining and Staking Act. The bill seeks to establish a clear framework for determining when staking rewards and mining income become taxable events.
This issue has remained controversial within the crypto industry for years. Many investors have argued that taxation rules are unclear, particularly during bear markets when digital assets can lose substantial value after rewards are received.
Supporters believe the proposal would provide certainty and reduce confusion for taxpayers involved in blockchain validation and mining activities.
Small Crypto Transactions May Receive Tax Relief
Another key proposal, the Less Tax Paperwork for Digital Asset Owners Act, aims to introduce a de minimis exemption for small cryptocurrency transactions.
Under current tax rules, even minor purchases made with cryptocurrency can trigger taxable capital gains calculations. The proposed exemption would simplify everyday crypto usage by eliminating reporting requirements for qualifying low-value transactions.
If approved, the measure could encourage broader adoption of digital assets for routine payments and purchases.
Additional Measures Focus on Donations and Compliance
The legislative package also includes provisions designed to clarify tax treatment for charitable donations involving digital assets. Other proposals address wash-sale rules and establish a voluntary disclosure program for taxpayers seeking to correct previous cryptocurrency tax filings.
Lawmakers hope these measures will create a fairer and more consistent regulatory environment while improving compliance across the industry.
Industry Leaders to Testify at June Hearing
The June 9 hearing will feature testimony from several major industry organizations and executives. Representatives from Coinbase, Fidelity Investments, Coin Center, the Crypto Council, and The Digital Chamber are expected to provide input on the proposed reforms.
Meanwhile, the White House continues discussions regarding the broader CLARITY Act, another crypto-focused legislative initiative that has also received support from Patrick Witt.
The growing political momentum behind digital asset regulation highlights Washington’s increasing focus on establishing clearer rules for the rapidly expanding cryptocurrency sector.
