Need to know what happened in crypto today? Here are the latest developments affecting Bitcoin, blockchain, DeFi, Web3, crypto regulation and the wider digital asset market.
US lawmakers are reviewing major changes to the tax treatment of crypto fees, stablecoins and lending. Meanwhile, the prospects for the CLARITY Act have weakened as political opposition grows ahead of a key Senate vote.
US Crypto Tax Package Leaves Out Mining and Staking Deferral
The US House Ways and Means Committee is set to review a 114-page cryptocurrency tax package that would introduce several changes to digital asset taxation.
However, the proposal does not include a measure that would allow crypto miners and stakers to delay paying taxes on rewards until those tokens are sold.
The Digital Asset Tax Certainty Act, H.R. 10357, was released alongside the committee’s markup notice. It does not include the reward-tax timing provision proposed under Representative Mike Carey’s Tax Clarity for Mining and Staking Act.
That proposal would have given taxpayers greater flexibility when reporting newly created crypto assets. They could either recognize the tokens as income when received or treat them more like self-created property and pay tax once they are sold.
Without that provision, mining and staking rewards would generally remain taxable when received or when the recipient gains control of them. As a result, investors could face a tax obligation before converting the assets into cash.
CLARITY Act Odds Drop to 16%
Prediction market Polymarket showed the probability of the CLARITY Act becoming law this year falling to around 16% after briefly rising following a revised Republican proposal.
The updated proposal included broader ethics provisions, initially lifting market expectations to roughly 35%.
However, sentiment quickly weakened as several Senate Democrats raised concerns about the revised legislation.
Senator Mark Warner, who has participated in negotiations, reportedly argued that the latest ethics provisions did not go far enough. Democratic lawmakers were also preparing their own counterproposal.
Republicans need 60 votes to advance the legislation in the Senate.
Failure to secure enough support could delay legislation designed to clarify how the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) share responsibility for overseeing digital asset markets.
State Attorneys General Oppose the CLARITY Act
The CLARITY Act is also facing opposition from a bipartisan coalition of 18 US state attorneys general ahead of the Senate procedural vote.
The coalition, led by New York Attorney General Letitia James, urged lawmakers to reject the legislation.
According to the group, parts of the proposed law could reduce the ability of individual states to pursue crypto companies accused of fraud or other misconduct.
Senate Republicans have described the latest proposal as their final draft. The revised version reportedly includes 126 substantive changes requested by Democrats.
New Ethics Rules Added to Crypto Legislation
The updated CLARITY Act also contains stronger ethics provisions for government officials with significant cryptocurrency interests.
Under the proposal, officials with major financial stakes in crypto issuers could be required to sell those holdings or place them in a blind trust.
State attorneys general could also receive a role in enforcing the new ethics requirements.
The legislation aims to establish a clearer federal regulatory framework for digital assets while dividing oversight responsibilities between the SEC and CFTC.
The upcoming Senate cloture vote requires 60 votes. Its outcome could determine whether the CLARITY Act moves forward to a broader Senate debate or faces another major delay.
